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HomeMy WebLinkAbout2007-2008 Annual Comprehensive Financial ReportCITY OF EVANSTON, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED FEBRUARY 29, 2008 Prepared by Finance Department This page has been intentionally left blank, CITY OF EVANSTON, ILLINOIS 'fable of Contents IN'FRODUCPORY SECTION PAGE III incipal Officials V. Organisation Chad vt Letter of Transmittal vn Certificate of Achievement for Excellence in Financial Reporting xiv FINANCIAL SECTION INDFPENDFNT AUDI'CORS' RFPOR'f ON THF, FINANCIAL STATLMLNTS MANAGEMENTS DISCUSSION AND ANALYSIS BASIC FINANCIAL S'rATFMFNTS Statement of Net Assets I I Statement of Activities 13 Governmental Funds Balance Sheet 15 Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances 16 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 17 Proprietary Funds Statement of Net Assets 18 Proprietary Funds Combining Statement of Revenues. T:xpenses, and Changes in Fund Net Assets 20 Proprietary Funds Statement of Cash Flows 21 Fiduciary Funds- Statement of Net Assets 23 Fiduciary Funds - Pension Trust Funds - Statement of Changes in Plan Net Assets 24 Notes to the Financial Statements Index for Notes to the Financial Statements Notes to the Financial Statements 25 2s RLOUIRGD SUPPLFMLNTARY INFORMATION Pirelighlerti Pension Fund, Police Pension Fund. and Illinois Municipal Retirement Fund - Schedules of Funding Progress 90 Pirefighterti and Police Pension Funds - Schedules of Employer Contribution 91 General Fund - Schedule of Revenues, Lxpenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 92 CITY OF EVANSTON, ILLINOIS Table of Contents FINANCIAL SECTION (Continued) PAGE Notes to the Required Supplementary Information Digest of Changes - IMRF 93 Conversion from GAAP basis to Budgetary basis 93 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCl-I]-DULES GOVERNMENTAL FUND TYPF,S Nonmajor Governmental Funds Combining Balance Sheet 94 Nonmajor Governmental Funds Combining Statements of Revenues, Expenditures, and Changes in Fund Balances 99 GIiNERAL POND Schedule of Revenues - Budget and Actual (Budgetary Basis) 104 Schedule of Expenditures - Budget and Actual (Budgetary Basis) 11 I SPECIAL RE ENUE FUNDS Motor Fucl Tax Find Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 113 Economic Development Fund Schedule of Revenues, Expenditures, and Changes in Pond I3alance - Budget and Actual (Budgetary Basis) 114 Emergency Telephone System Fund Schedule of Revenues. Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 115 Affordable Dousing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 116 Community Development Block Grant Fund Schedule of Revenues, I>xpenditn'es, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 117 Schedule of Expenditures - Budget and Actual (Budgetary Basis) 118 Special Scrvice District No. 4 Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 121 CITY OF EVANSTON, ILLINOIS Table of Contents COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) PAGE Township -'Town Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 122 Township - General Assistance Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 123 DEBT SERVICE FUNDS All Funds Combining Schedule of Rcvcnues. Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) 124 PROPRIETARY FUND'1'YPI?S Nonmajor Proprietary Funds Statement of Net Assets 126 Nonmajor Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 128 Nonmajor Proprietary Funds Statement of Cash Flows 129 WATER 17UND Schedule of Net Assets 131 Schedule of Changes in Net Assets - Reserved - Resa icted Accounts 133 Operation and Maintenance Account - Schedule of Revenues. Expenses. and Changes in Unreserved Net Assets - Budget and Actual 134 Operation and Maintenance Account - Schedule of Operating Revenues Budget and Actual 135 INTERNAL SERVICI; FUNDS All Funds Statement of Net Assets 136 Combining Statement of Revenues, Expenses, and Changes in Net Assets 137 Combining Statement of Cash Flows 138 AGENCY FUNDS Special Assessment Agency Fund Statement of changes of Assets and Liabilities 140 In This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Table of Contents COM13INING AND INDIVIDUAL FUND STA'1'I;MFNTS AND SCI-IFDULFS (Continued) PAGF STATISTICAL SECTION (UNAUDITED) Net Assets by Component 141 Changes in Net Assets 142 I'und Balances - Governmental funds 143 Changes in Fund Balances - Governmental funds 144 Assessed Value and Actual Valued of'faxable Property 145 Principal Properly Tax Payers 146 Property Tax Levies and Collections (City) - Last Ten Levy Years 147 ]ratio of General Debi Outstanding 148 Direct and Overlapping Governmental Activities 149 Pledged - Revenue Coverage 150 Demographic Statistics - Last Ten Years 151 Principal Employers 152 Pull -Time 8quivalent City Government L'niployces by ]'unction 153 Property fax Rates per $100 - Direct and Overlapping Govcmments 154 Water Sold by Type of Customer (in 100 cubic feet) 155 Water Sold by Major Customers 156 Operating Indicators by Function/Program 157 Capital Assets Statistics by Function 158 TAX INCREMENT FINANCING D1S'fRIC'I' RGQIIIREMGN'rS Independent Accountantti Report on Compliance - Tax Increment 1'inancing Disbicts 159 iv This page has been intentionally left blank. INTRODUCTORY SECTION This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Principal Officials February 29, 2008 Cheryl Wollin Lionel Jean -Baptiste Melissa A. Wynne Steven J. Bernstein LEGISLATIVE CITY COUNCIL Lorraine H. Morton, Mayor EXECUTIVE Rolanda B. Russell, Interim City Manager FINANCE DEPARTMENT Steven E. Drainer, Acting Finance Director I-litesh Desai, Accounting Manager Patricia P. Ford, Payroll Manager Jewell Jackson, Purchasing Manager Kevin Lookis, Revenue Manager Wendy McCambridge, Administrative Adjudication Manager v Delores A. Holmes Edmund B. Moran, Jr. Elizabeth B. Tisdahl Ann Rainey Anjana Hansen ADVISORY BOARDS AND COMMISSIONS FINANCE LAW I COMMUNITY ' DEVELOPMENT FIRE i LIBRARY CITY OF EVANSTON ORGANIZATION CHART RESIDENTS MAYOR CITY COUNCIL CITY MANAGER I vi CITY CLERK PUBLIC WORKS HUMAN RESOURCES HEALTH AND ' HUMAN SERVICES POLICE RECREATION, PARKS AND FORESTRY City of Evanston - September 24, 2008 The Honorable Mayor Lorraine 1-1. Morton, Members of the City Council City of Evanston, Illinois INTRODUCTION The Comprehensive Annual Financial Report (CAFR) of the City of Evanston (City) for the fiscal year ended February 29, 2008 is hereby submitted. The CAFR is prepared by the City's Finance Department in accordance with the financial reporting principles and standards of the Governmental Accounting Standards Board. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and capital assets of the City. All disclosures needed to enable the reader to understand the City's financial activities have been included. This report consists of management's representations concerning the finances of the City of Evanston. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed to both protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Evanston's financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 as amended and U.S. Office of Management and Budget Circular A-] 33, Audits of States, Local Governments. and Non -Profit Oreanizations. Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations, and auditors' reports on the internal control structure and compliance with applicable laws and regulations, is to be presented in a separate single audit report. vii 2100 Ridge Awmw In 00201-2798 T 847 328 2100 TT)' 847 328 4080 uww � n,oL c.maon or. This report includes all the funds and capital assets of the City and its component unit. The Evanston Township Board of Trustees is the same individuals as the City Council members. The financial statements of Evanston 'Township are included in the reporting entity. Although the "Township is a legally separate entity, it is considered a component unit and, therefore, data from the Township is blended with data of the City. The City's financial statements have been audited by Virchow, Krause & Co., LLP., a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the f inancial statements of the City of Evanston for the fiscal year ended February 29, 2008, arc free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates by management, and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements for the fiscal year ended February 29, 2008, are fairly presented in conformity with GAAP. The independent auditors' report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE CITY OF EVANSTON The City: The City of Evanston constitutes many communities, perspectives, and qualities: it is a suburb, an urban center, a university town, and lake -front community; it has leafy neighborhoods and lake -front mansions; it has apartment, condominium, and student housing; its residents are commuters and locally employed workers; its downtown is prospering, but neighborhood commercial centers arc also strong and developing. It is a part of the Chicagoland economy and has a vigorous commercial and professional economy of its own. A population of approximately 75,000 is diverse by race, religion, age, education, economics, and occupation. With 8,700 people per square mile, Evanston has double the population density of the average North and Northwest suburb, and approximately half the density of Chicago. The City has over 260 acres in 75 parks and 5 beaches. Evanston is contiguous with Chicago, and only 13 miles by rapid transit, commuter rail, expressway, or parkway from downtown Chicago. It borders the north shore communities of Skokie and Wilmette. 2100 Rider A\PnUP Enan,ton, IIIhw,, b0201-2708 T 847 328 2100 TTY 847 328 4080 www � inrMic.m:v m n In 1863, the Village of Evanston was incorporated as a town and, after several annexations, in 1892, the town became a city. The City's southern boundary was established with the City of Chicago and the present City limits, encompassing an area of approximately eight square miles, have been essentially the same ever since. The City has four miles of shoreline along Lake Michigan. Evanston is the home of Northwestern University, so named as it was established to serve the Northwest Territory. The University first platted the village which surrounded it. The State Legislature named the Village "Evanston" in honor of Dr. John Evans, the then president of the University's Board. About 4,000 students live in university housing; another 900 live in fraternities and sororities. Roughly 800 live in two graduate student -housing complexes and approximately 3,500 live off -campuses, mostly in privately owned apartments in Evanston. The Government: The City is a home rule municipality under the Illinois Constitution. As such, it has no tax rate or debt limits, nor is it required to conduct a referendum to authorize the increase of debtor the imposition of real property taxes. The City has a Council/Manager form of government with an elected Mayor. The Mayor is elected for a four-year term. The Aldermen each represent one of nine wards and are elected to terms of four years. The City Council is organized into five standing committees: Administration and Public Works, Budget, Human Services, Planning and Development, and Rules. The City Council has also established several special committees and commissions and advisory boards. The City Manager is the Chief Administrative Officer of the City and is responsible for the management of all City operations under the direction of the City Council. The City Manager appoints and supervises the directors of the City's twelve departments. The Finance Director is responsible for the central financial functions of the City. The City provides a broad range of municipal services, including police and fire protection, streets and parking, water and sewer service, public libraries, social services, health and services for the aging, beaches, parks, and cultural events. The City is engaged in assisting in community and economic development and maintains land use controls. Schools are provided by separate school districts, governed by elected school boards. A portion of the City is served by the Skokie Park District. Wastewater treatment is provided by the Metropolitan Water Reclamation District. ix 2100 Md& A,,mw Beanaun, Illw,k 60201.2798 T 847 428 2100 TTY 847 428 4080 v. om „trvu.ao') ui" Budget Process: The City's fiscal year begins on March I of each year. The City Manager submits to the City Council a proposed operating budget in December for the fiscal year commencing the following March 1. The operating budget includes proposed expenditures and the means of financing those expenditures. The City Council holds public hearings (several Saturday morning public hearings were held prior to adoption of the 2008/09 budget) and then may modify the budget prior to adoption. The City Manager is authorized to transfer budgeted amounts between departments within any fund (such as the General Fund); however, any revisions that alter the total expenditures of any fund must be approved by the City Council. Budgets are legally adopted on a basis consistent with accounting principles generally accepted in the United States of America except that 1) property taxes are budgeted as revenue in the year for which they are levied; 2) debt service payments are budgeted upon tax levy for such purposes, and 3) encumbrances are recorded as the equivalent of an expenditure for budget purposes. For purposes of preparing the General Fund schedule of revenues— budget and actual, GAAP revenue and expenditures have been adjusted to the budgetary basis. The budgets of the governmental type funds are prepared on a modified accrual basis. Debt service payments and a number of specific accrued liabilities are only recognized as expenditures when payment is due, and revenue is recognized only when it has actually been received. The Comprehensive Annual Financial Report of the City (CAFR) presents expenditures and revenues on both a GAAP basis and a budget basis for comparison. The City uses funds to report on its financial position and the results of its operations. Fund accounting is designated to demonstrate legal compliance and to aid financial management by segregating transactions related to certain City functions or activities. A fund is a separate, self -balancing accounting entity. In the City, there are three categories of funds: governmental, proprietary, and fiduciary. Governmental funds are used to account for all or most of the City's general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general fixed assets (capital project funds), and the servicing of general long-term debt (debt service funds). The General Fund is used to account for all activities of the City not accounted for in some other fund. In the fiscal year 2008/2009, the City projects that 42.9% (94.1 million) of all City expenditures will occur in the General Fund. Other major funds include the Washington National Tax Increment District Fund, the Water Fund, and the Sewer Fund. The Enterprise Funds (Water and Sewer) are operated and budgeted on a full accrual basis. Expenditures are recognized when a commitment is made (through a purchase order), and revenues are recognized when they are obligated to the City (for example, water user fees are recognized as revenue when bills are produced). x 210012idcc Awmw Fi anxton, Illmou , 60201-2798 T 847.328 2100 TTY 84T328 4080 wu'w nrcol?can<inn of Financial Control Procedures: The City reports financial results based on generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board. The accounts of the City are divided into separate self -balancing funds comprised of its assets, liabilities, fund equity, revenues, and expenditures, as appropriate. The City's expenditures are monitored on a regular basis by the Finance Department and Budget Department. Disbursements are made only if expenditure is within the authorized appropriation. For every major expenditure, a purchase order is prepared and approved and the related appropriation is encumbered before a check is issued. MAJOR INITIATIVES Some major initiatives the City has undertaken during the fiscal year which the City believes will ultimately improve the quality of life for its residents are as follow: The Police Department purchased two PODS camera systems and is utilizing these cameras where needed throughout the community. The cameras are placed high above the street on lamp or utility poles. The Parks/Forestry & Recreation Department has been awarded the following grants as of September 2007: a Local Arts Agency Program grant from the Illinois Arts Council; a Community Arts Access grant from the Illinois Arts Council; a Summer Food Program grant from the U.S. Department of Agriculture through the Illinois State Board of Education; a printing services grant from Allegra Print and Imaging to produce Arts Week Evanston programs; Tennis in the Parks funding from United States Tennis Association (USTA) and the National Parks and Recreation Association (NRPA) to assist with reconstruction of the tennis courts at Mason Park; a donation from the Chicago Tennis Patrons supportingjunior tennis programs; a grant from NRPA's Take Me Fishing initiative; and the Fvanston Lighthouse Rotary Club funded scholarships to Evanston Ecology Center 2007 summer camps. Parks/Forestry & Recreation increased teen special recreation program volunteers by 40 percent. Enrollment in teen special recreation programs increased by approximately 20 percent. The Medical Reserve Corps created by the Department of Health & human Services has been established. This group, consisting of medical professionals who work or reside in Evanston, are willing to assist the City in an emergency (e.g. accidents, infectious disease, or bioterrorist attack). During FY 2008, construction on the final phases of the Long Range Sewer Improvement Program continued. The remaining projects represent the final phase of the Long Range Sewer Improvement Program and completion of the largest public works project ever undertaken by the City. xi 2100 R,dr;e A, emw E,ansron, lllu ioi< 60201.2708 T 847,1282100 TTY 847328 4080 \\'N'N`fih'(lit'\'.III�f(111 ,11„ In the Fire Department, all of the department paramedics went through Advanced Cardiac Life -Support Training. In addition, the installation of mobile data computers, used for preplan information on structures to the firefighters while responding to calls, has been completed. In the Public Works Department, staff continued to produce results and deliver services at a high level. Street resurfacing was completed on time and within budget. Both a 20 year multimodal transportation and 10 year bridge plan were developed and the Ridge Avenue traffic signal project was completed. In the City's main branch Library, the Children's Room and Young Adult Room were completed on time and on budget. In the Business Performance and Technology Division, staff continued to implement technologies that expand the capability of citizens to interact with the City in an electronic fashion such as paying bills online. The City of Fvanston's Finance Department did an advance and current refunding of the City's 1999 and 1997 general obligation bonds for a total net present value savings of approximately $858,000, thus reducing the City's debt payments. FACTORS AFFECTING FINANCIAL CONDITION The following are factors which give a broader context to the financial information contained in this CAFR report. Local Economy: The local economy continues experiencing a slowdown in the housing market, while retail sales continue to be steady compared to the previous year. As the national economy improves, the City anticipates a gradual and consistent increase in revenues as well. The City continues to have a five-year Capital Improvements Program with planned improvements of $143,834,074 over the next five years. Risk Management: The City has changed its management approach to risk management and has in place third -party administration of its liability and workers' compensation claims. Additionally, more staff and resources are being dedicated to internal risk management. The City has also settled the majority of its largest outstanding lawsuits from previous years and liability estimates are currently very low. Pension and Other Post retirement Benefits: 'The City sponsors a single -employer defined benefit pension plan for both its police and firefighters. Each year, an independent actuary engaged by the City calculates the amount of the annual contribution that the City must make to the pension plan to ensure that the plan will be able to fully meet its obligations to retired employees on a timely basis. As a matter of Budget Policy, the City fully funds each year's annual required contribution to the pension plans as determined by the actuary. xii 2100 Ridge Avenue EEansmn, hhnnis 60201-2798 T 847.328.2100 TrY 847.328 4080 ww�c nn¢�fi•va n.nm o. The City also provides pension benefits for its non-public safety employees. The benefits are provided through a state-wide plan managed by the Illinois Municipal Retirement Plan (IMRF). The City has fully funded this plan. AWARDS AND ACKNOWLEDGMENTS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal year ended February 28, 2007. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the City also received the GFOA's Award for Distinguished Budget Presentation for its annual appropriated March 1, 2007 budget. In order to qualify for the Distinguished Budget Presentation Award, the government's budget document was judged to be proficient in several categories, including policy documentation, financial planning, and organization. We acknowledge the contributions and excellent work of Hitesh Desai, the newly hired Accounting Manager, along with Raye Janousek, Rom Chmara and Andy Villamin in the Accounting Division in preparing the financial statements. Appreciation is also extended to all other Finance and City Staff who contributed to the preparation of this report. We also extend thanks to the Mayor's Office and Members of City Council for their interest and support in planning and conducting the City's financial affairs. Respectfully submitted, Rolanda B. Russell Interim City Manager �iteven E. Drazner Acting Finance Director This page has been intentionally left blank. Certificate of Achievement for Excellence in Financial Reporting Presented to City of Evanston Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended February 29, 2007 A Certificate of Achievement for Excellence in Financial Repoiting is presented by the Goveamnent Finance Officers Association of the United States and Canada to government units and public employee retirennent systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in governnnent accounting and financial repo Ong. 1 ST SI Uf`RO RS }< ca'uw President Executive Director xiv This page has been intentionally left blank. FINANCIAL SECTION This page has been intentionally left blank. INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS This page has been intentionally left blank. R VirchowKrause company INDEPENDENT AUDITORS' REPORT To Honorable Lorraine H. Morton, Mayor and Members of the City Council Evanston, Illinois We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Evanston, Illinois, as of and for the year ended February 29, 2008, which collectively comprise the City of Evanston's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Evanston's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Township of Evanston, which represent 0.8 percent, 1.5 percent, and 1.1 percent, respectively, of the assets, net assets, and revenues of the governmental activities and 0.9 percent, 0.7 percent, and 2.1 percent, respectively, of the assets, fund balances, and revenues of the aggregate remaining fund information. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Township of Evanston, is based on the report of other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. The financial statements of the Township of Evanston were not audited in accordance with Government Auditina Standards. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of other auditors provides a reasonable basis for our opinions. In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Evanston, Illinois as of February 29, 2008, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. As described in Note 9 H., the city adopted the provisions of GASB Statement No. 45, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions, effective March 1, 2007. In accordance with Government Auditina Standards, we have also issued a report dated September 24, 2008 on our consideration of City of Evanston's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in Virehow, Krause & Company, LLP Certified Public Accountants & Consultants • An Independent Member of Baker Tilly International To Honorable Lorraine H. Morton, Mayor and Members of the City Council Evanston, Illinois accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The management's discussion and analysis, the historical pension information and the budgetary comparison schedules as listed in the table of contents are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We and the other auditors have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Evanston's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements have been subjected to the auditing procedures applied by us and the other auditors in the audit of the basic financial statements and, in our opinion, based on our audit and the report of other auditors, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. We also have previously audited, in accordance with auditing standards generally accepted in the United States of America, the City of Evanston's basic financial statements for the year ended February 28, 2007, which are not presented with the accompanying financial statements. In our report dated August 27, 2007, we expressed unqualified opinions on the respective financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the primary government of the City of Evanston, Illinois In our opinion, the 2007 amounts reported in the schedules are fairly stated in all material respects in relation to the basic financial statements for the year ended February 28, 2007, taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. / lz� Cirw2c,w� L.,L Oak Brook, Illinois September 24, 2008 -2- MANAGEMENT'S DISCUSSION AND ANALYSIS FEBRUARY 29, 2008 The City of Evanston (the City) discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the City's financial activity, (3) identify changes in the City's financial position (its ability to address the next and subsequent year challenges), (4) identify any material deviations front the financial plan (the approved budget), and (5) identify individual fund issues or concerns. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on page vii of this report. FINANCIAL HIGHLIGHTS A. The City's net assets increased by $9,951,215 (or 3.9%) from the prior fiscal year reported (FY 2007). The governmental net assets decreased by $3,396,810 (or 3.9% from FY 2007) and the business -type activities net assets increased by $13,348,025 (or 7.8% from FY 2007). 13. The governmental activities revenue increased by $2,313,688 (or 1.8%) front the prior year. The expenditures increased by $6,544,766 (or 5.4%). C. The business -type activities revenue increased by $1,595,064 (or 4.7%). The expenditures increased by $1,143,513 (or 4.4%) from the prior year. D. The total cost of all City programs increased by $7,688,281 or 5.2%. E. The City of Fvanston issued general obligation debt in the amount of $30,385,000 during the current fiscal year. Of this amount, $15,555,000 was used to fully and partially refund previous issues with the balance used to fund various capital improvement projects. USING THIS ANNUAL REPORT The financial statement's focus is on both the City as a whole (government -wide) and on the major individual funds. Both perspectives (government -wide and major fund) allow the user to address relevant questions, broaden a basis for comparison, and enhance the City's accountability. The City's financial reporting includes the funds of the City (primary government) and, additionally, organizations for which the City is accountable (component units - the Township). 'rile Evanston Township Board of Trustees are the same individuals as the City Council members. The Township is blended into the primary government for financial reporting proposes. -3- REPORTING THE CITY AS A WHOLE Government -wide Financial Statements The City's annual report includes two government -wide financial statements. "These statements provide both long- term and short-term information about the City's overall status. Financial reporting at this level uses a perspective similar to that found in the private sector with its basis in full accrual accounting and elimination or reclassification of internal activities. The first of these government -wide statements is the Statement of Net Assets This is the City-wide statement of financial position presenting information that includes all the City's assets and liabilities, with the difference reported as ncl assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City as a whole is improving or deteriorating. Evaluation of the overall health of the City would extend to other non -financial factors such as diversification of the taxpayer base or the condition of City infrastructure, in addition to the financial information provided in this report. The second government -wide statement is the Statement gfActivities which reports how the City's net assets changed during the current fiscal year. All current year revenues and expenses are included regardless of when the cash was received or paid. An important purpose of the design of the statement of activities is to show the financial reliance of the City's distinct activities or functions on revenues provided by the City's taxpayers. Both government -wide financial statements distinguish governmental activities of the City that are principally supported by taxes and intergovernmental revenues, such as grants, from business -type activities that are intended to recover all or a significant portion of their costs through user fees and charges. Governmental activitics include general government, public safety, public service, fleet service, insurance fund, and culture and recreation. Business -type activities include water and sewer utilities, parking, and garages. Fiduciary activities, such as employee pension plans and agency funds, are not included in the government -wide statements since these assets are not available to fund City programs. 'rile government -wide financial statements are. presented on pages 11 - 14 of this report. REPORTING THE CITY'S MOST SIGNIFICANT FUNDS Fund Financial Statements A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The City uses funds to ensure and demonstrate compliance with finance -related laws and regulations. Within the basic financial statements, fund financial statements focus on the City's most significant funds, rather than the City as a whole. Major funds are separately reported, while all others are combined into a single, aggregated presentation. Individual fund data for nonmajor funds is provided in the form of combining schedules in a later section of this report. The City has three kinds of funds: Governmenful finds are reported in the fund financial statements and encompass essentially the same functions reported as governmental activities in the government -wide financial statements. However, the focus is very different with fund statements, providing a distinctive view of the City's governmental funds. These statements report short-term fiscal accountability focusing on the use of spendable resources and balances of spendable resources available at the end of tine year. They are useful in evaluating annual financing requirements of governmental programs and the commitment of spendable resources for the near -terns. -4- Since the government -wide focus includes the long-term view, comparisons between these two perspectives may provide insight into the long-term impact of the short-term financing decision. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to assist in understanding the differences between these two perspectives. Budgetary comparison statements are included in the basic financial statements for the general fund and major special revenue fund. Budgetary comparison schedules for the other special revenue funds and the debt service fund can be found in a later section of this report. These statements and schedules dennonstrate compliance with the City's adopted and final revised budget. The basic government fund financial statements are presented on pages 15 - 16 of this report Prnprietaryfimds reported in the fund financial statements generally report services for which the City charges customers a fee. There are two kinds of proprietary funds. These are enterprise funds and internal service funds. Enterprise funds essentially encompass the same functions reported as business -type activities in the government -wide statements. Services such as the water utilities and the parking garages, are provided to customers external to the City organization. Internal service funds provide services and charge fees to customers within the City organization, such as equipment services (repair and maintenance of city vehicles) and the insurance fund. Because the City's internal service funds primarily serve governmental functions, they are included within the governmental activities of the government -wide financial statements. Proprietary fund statements and statements for discretely presented component units (reporting is similar to proprietary funds) provide both long-term and short-term financial information consistent with the focus provided by the government - wide financial statements but with more detail for the Water Fund and the Township. Individual fund information for internal service funds and nonmajor enterprise funds is found in combining schedules in a later section of this report. The basic proprietary fund financial statements are presented on pages 18 - 22 of this report Fiduciary funds such as the employee pension plans are reported in the fiduciary fund financial statements, but are excluded from the government -wide reporting. Fiduciary fund financial statements report resources that are not available to fund City programs. Fiduciay fund financial statements report similarly to proprietary funds. The basic fiduciary fund financial statements are presented on pages 23 - 24 of this report. Armes to the financial.stalements The accompanying notes to financial statements provide information essential to a full understanding of the government -wide and fund financial statements. The notes to the financial statements begin on page 28 of this report. Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligations to provide pension benefits to its employees. Other supplementary information includes detail by fund and component unit for receivables, payables, transfers, and payments within the reporting entity. Required supplementary information can be found on pages 90 - 93 of this report. Major funds and component units are reported in the basic financial statements, as discussed. Combining and individual statements and schedules for nonmajor and internal service funds are presented in a subsequent section of this report beginning on page 94. Additional information on capital assets and long-term debt can be found on page 48 and 59 respectively. -5- Financial Analysis of the City as a Whole The City's combined net assets increased by $9,951,215 from FY 2007 - an increase from $257,750,163 to $267,701,378. Current and Other Assets Capital Assets Total Assets Long -Term Liabilities Other Liabilities Total Liabilities Net Assets Investment in Capital assets, net of Debt Restricted Unrestricted Total Net Assets STATEMENT OF NET ASSETS Governmental Activities 2008 2007 $136,51092 $127,933,655 146,761,654 141,126,725 283,280,446 269,060,380 158303,507 I28,384,631 41,635,685 54,337,685 200,339,192 192,722,316 Business -type Activities 2008 2007 $33,165,483 $36,316,607 328,070,154 319,760,048 361,235,637 356,076,655 173,360,998 156,668,520 3,114,515 27,996,036 176,475,513 184,664,556 Total Primary Government 2008 2007 $169,684,275 $164250,262 474,831,808 460,886,773 644,516,083 625,137,035 332,064,505 285,053,151 44,750,200 82333,721 376,814,705 367,386,872 31,541 654 31,132,837 159,184,804 140,621,172 190,726,458 171,754,009 23,168,727 27,444 436 1,996,369 9,373,730 25,155,096 36,818,166 28,230,873 27,760,791 23,588,951 21 A 17,197 51,819,824 49,177,988 $82,941,254 $86,338,064 $184,760,124 $171,412,099 $267,701,378 $257,750,163 The City's total revenues increased by $3,908,752 or 2.4%. The City's total expenditures for all programs increased by $7,688,281, or 5.2%. Governmental activity total revenue increased $2,313,688 primarily due to much better than anticipated building permit revenue and charges for services. Expenditures in the governmental activities increased by $6,544,766, materially greater than the increase in revenues. Expenditure increases were primarily due to increased costs incurred by Public Works, Public Safety, and Recreation Departments. The revenue for business -type funds slightly increased by $1,595,064 from charges for services while expenditures also increased by $1,143,515 due to the Sherman Garage Fund. Governmental funds The governmental activities experienced a net fund balance decrease of $3,396,810. This was mainly due to an increase in the transfers out to business type funds of $4,500,000. Business funds: The business -type activity fund balance experienced an increase in net assets of $13,348,025. This is primarily due to an annual surplus in the Sewer and Maple Garage Funds of $5,543,773 and $4,677,255, respectively. The following table provides a summary of the City's changes in net assets: STATEMENT OF CHANGES IN NET ASSETS Governmental Activities Business -type Activities Total Primary Government 1 2008 2007 2008 2007 2008 2007 1 Revenue Program Revenues Charges for services $31,678,323 $26,762,844 $33,940,877 $32,288,616 $65,619,200 $59,051,460 Operating grants and contributions 5,982,191 3,678,555 5,982,191 3,678,555 Capital grants and contributions 117,569 195,076 117,569 185,076 General Revenues: Sales taxes 16,172,072 14,386,432 16,172,072 14,386,432 Property taxes 48,360,339 61,992,603 48,360,i38 61,982,603 Utility taxes 8,537,098 8,108,008 8,537,098 8,108,008 Othertaxes 15,948,537 9,179,229 15,848,537 9,179,229 Investment income 3b52,684 3,752,377 1,286,823 1,344,020 4,939,507 5,090,397 Total Revenue 130,349,812 128,035,124 35.227,700 33,632,636 105,576,512 161,667,760 Expenses General management and Support 20,072,484 19,950,559 20,072,484 19,950,558 Public safety 48,762,564 46,368,286 48,762,564 46,368,286 Public works 21,566,199 16,504,737 21,566, 199 16,504,737 Health and human resources development 4,982,385 6,107,S14 4,982,385 6,107,514 Recreation and cultural Opportunities 20,634,114 18,303,273 20,634,114 18,303,273 Housing and economic development 7,090,110 7,924,011 7,090,110 7,924,011 Interest 5,521,827 6,926,539 5,521,827 6,926,538 Water 8,668,290 8,779,360 8,668,290 8,778,360 Sewer 9,972,020 9587,903 81972,020 9,587,903 Sherman garage 4,269,860 1,613,186 4,269,860 1,613,186 Maple avenue garage 2,682,440 2,910,151 2,682,440 2,910,151 Motor vehicle parking System 2,403,004 2,962,499 2,403,004 2,962,499 Total Expense 12U29,683 122,094,917 26,995,614 25,952,099 155,625,297 147,937,016 Increase in net assets before transfer 1,719,129 5,950,207 8,232,086 7,780,537 9,951,215 13,730,744 Transfers (5.115939) (615,940) 5,1)5,939 615,940 Increase in net assets (3.396,810) 5,334,267 13,348.025 8,396,477 9,951 215 13,730,744 Net Assets - Beginning 80,338,064 81,003,797 I71,412,099 163,015 622 257,750,163 244,019,419 Net Assets - Ending $82,941,254 $86,338,064 $184,760,124 $171,412,099 $267,701,379 $257,750,163 -7- Financial Analysis of the City's Funds Governmental Funds As discussed, governmental funds are reported in the fund statement with a short-term, inflow and outflow of spendable resources focus. This information is useful in assessing resources available at the end of the year in comparison with upcoming financing requirements. Governmental funds reported ending fund balances of $87,955,607 as a year-end total, including $26,062,996 unrestricted, indicating availability for continuing City service requirements. Reserved fund balances in the General Fund total $1,107,516 and Unreserved designated fund balances total $5,426,091 including $2,590,000 for IMRF, $2,576,360 for Compensated absences and $259,731 for Capital projects. Major GOVenVillneHlal Plaids The General Fund is the City's printagi operating fund and the largest source of day-to-day service delivery. The fund balance of the General Fund decreased by $245,650. Some revenues that came in better than budget were building/right of way permits, cable franchise fees, state income tax, sales tax, fines, and charges for services. Departments in which expenditures materially exceeded budget include Human Resources, Police, Fire, Streets, and Health & Human Services. The Capital improvements fund accounts for the City's Capital improvement program. The program includes improvements to public buildings, paving of City streets, improvement and development of recreation facilities and other improvements. The fund balance of the Capital improvements fund increased by $1,850,528. Combined Non -Major Governmenful Funds Combined non -major fund balances totaled $48,095,526, a decrease of $1,135,748 from prior year of $49,231,274. Non - major funds with materially annual surpluses include Economic Development, E-911, Affordable I lousing, I TOME, CDBG, Township, Howard Hartrey TIF, and Washington National Debt TIP. Non -major funds with materially annual deficits included the Motor Fuel, Mayor's Special blousing, Debt Service, Central Business TIF, Southwest TIF, and Washington National CIP TIF. Capital Improvement Project Fund has been reclassified from non -major to a major fund. Proprietary Funds The proprietary fund statements share the same focus as the government -wide statements, reporting both short-term and long-term information about financial status. The main proprietary funds operated by the City are the Water, Sewer, and Sherman Garage Funds, whereas the non -major proprietary funds include the Maple Garage and Parking Funds. The three major funds had a solid year financially with a total fund balance increase of $8,412,448. Although fund balances in these major proprietary funds showed a healthy increase, it is important to keep in mind that these Funds carry a heavy debt level and therefore, large debt payments will be required in the future. The non -major proprietary Maple Garage and Motor Vehicle Parking Funds also had increases in fund balance as well, but the primary reason for the increase in Maple Garage was from a interfund transfer in from the Central Business TIF Fund. Internal Service Funrls The City's combined internal service funds net assets were $6,772,702 as of February 29, 2008. At March 1, 2007, the combined funds had a balance of $6,473,195. General Fund Budgetary Highlights The original budgets for the General Fund did require an amendment to the appropriations in the amount of $2,087,500. Actual expenditures in the General Fund were over budget primarily due to early retirement accrual payouts, health insurance, FICA/Medicare, overtime in Police and Public Works, and salt expenditures due to a harsh winter season. Capital Assets The City established a policy of capitalizing equipment and vehicles with $20,000 or more in value and infrastructure and building improvements with $100,000 or more in value. The City's investment in capital assets, net of accumulated depreciation, for governmental and business -type activities, as of February 29, 2008, was $474,831,808. The total increase in governmental funds and business type activity funds were $5,634,929 and $8,310,106 respectively. The overall percent increase in capital assets was 2.97% for the City as a whole. Major capital asset increases during the current fiscal year were primarily attributed to capitalized construction in progress. Readers desiring more detailed information on capital asset activity should see Note 6 in the Notes to the Financial Statements, Long -Tern Debt At the end of the fiscal year, the City had total general obligation bonded debt outstanding of $181,750,000, of which $66,530,000 was for business type activities paid by the City's Parking, Sewer, Maple, and Sherman Garage Funds. During the current year, the City issued $30385,000 in fixed rate general obligation bonds for various City capital project requirements which also included a current refunding of series 1997 for $11,970,000 and a partial advance refunding of series 1999 for $3,585,000. As a home rule government under Illinois law, there is no legal debt limit for the City. Readers desiring more detailed information on long-term debt should see Note 9 in the Notes to the Financial Statements, Bond Ratings The City's general obligation bonds are rated Aal by Moody's Investor Rating Service and AAA by Fitch Ratings, Evanston City Water Fund revenue bonds are rated Aal and AA for uninsured issues. Econonvie Factors Evanston is a diverse community consisting primarily of residential homes, several non profit organizations including a very well known private university, and many smaller scale retail shops/restaw ants as well as some popular, big box retailers. Sales tax receipts, a good indicator of economic health, came in slightly better than budget and was greater than in the prior year. Other revenues which came in stronger than budget were building permit fees, fines, charges for services, and various intergovernmental revenues. The unemployment rate in Evanston increased slightly but was consistent with surrounding communities. The primary employers in the City include universities, several not -for -profit organizations, and numerous retail businesses and restaurants. Due to the high number of non profit organizations which make a large portion of Evanston's workforce, the overall state of the economy may play less of a role related to employment as compared to communities containing a larger number of for -profit businesses. This page has been intentionally left blank. Corrtacthrg the City'v Financial Management This financial report is designed to provide a general overview of the City's finances, comply with finance -related laws and regulations, and demonstrate the City's commitment to public accountability. If you have questions about this report or would like to request additional information, contact the City Finance Department at the City of Evanston, 2100 Ridge Avenue, Evanston, Illinois 60201 or access the website at www.citvofevanston.ora. -10- This page has been intentionally left blank. BASIC FINANCIAL STATEMENTS CITY OF EVANSTON, ILLINOIS Statement of Net Assets February 29, 2008 Assets Cash and equivalents Investments Receivables (net, where applicable, of allowances Rn uncollectibles) Properly taxes Accounts Notes Special assessments Accrued interest Other Due from other governments Internal balances Inventories Restricted assets Cash and equivalents and investments Capital assets Capital assets not being depreciated Construction in progress Artwork Capital assets (net of accumulated depreciation) Other assets fatal Assets The accompanying notes ate an integral part of this statement. Primary Government Governmental Business -type Activities Activities Total 52,765206 $ 22,108,006 $ 74,973,212 16.466,144 1 M0,000 17,466,144 46,488,292 - 46,488,292 3,498 4,156,452 4,159,950 6,047,186 - 6,047,186 1,087,014 - 1,087,014 48,496 46,989 95,485 1,980,773 29,043 2,009,816 7,101,694 - 7,101,694 4,139365 (4,139,365) - 373,030 869,737 1,241,767 - 8,83L621 8,831,621 25,662,516 3.297,937 28,960,453 4,146,126 18,757,533 22,903,659 - 251,624 251,624 116,953,012 305,763,060 422,716,072 18,094 264,000 282.094 281280.446 361,235,637 644,516,083 Primary Government Governmental Business -type Activities Activities 'total Liabilities Vouchers payable $ 3,376,519 $ 913,022 $ 4,289,541 Accrued payroll 2,016915 - 2,016 915 Interest payable 1,083.912 33,166 11117,078 Other payablcs 181.574 - 181,574 Due to other governnsnis 3,075 - 3,075 Due to pension funds 1721,435 - 3,721,435 Payable f -om restricted assets Vouchers payable - 1,155,045 1,155,045 Interest payable - 1,013,282 1,013,282 Deferred revenues 31,252,255 - 31,252,255 Noncurrent liabilities Payable from restricted assets - due within one year - %924,224 9,924,224 Due within one year 18,192,102 10,075,292 28,267,394 Due in more than one year 14Q51 1,405 153361 A82 293,872,887 "Dotal Liabilities 200,339,192 176A75.513 376,814,705 Net Assets Investment in capital assets, net of related debt 31,951,654 159,184,804 191,136,458 Restricted Culture and recreation 945,810 - 945,810 Capital Improvements - 800,000 800,000 Debt service 22,198,393 1,186,369 23384,762 Other 24,524 - 24,524 Unrestricted 27,820,873 23,588,951 51A09,824 'total Net Assets $ 92,941,254 $ 184,760,124 $ 267,701.378 12- CITY OF EVANSPON, ILLINOIS Statement of Activities Year ended February 29.2008 Functions/Proerams Governmental activities: General management and support Public safety Public works Health and human resource development Recreation and cultural opportunities Housing and economic development Interest 'Total governmental activities Business -type activities: Water Sewer Sherman garage Maple avenue garage Motor vehicle parking system 'Pohl business -type activities Total 'Phe accompanying notes are an integral part of this statement Program Revenues Operating Charges for Grants and Expenses Services Contributions $ 20,072,484 $ 12639,171 $ - 48,762,564 1.842,859 265.283 21.566,199 2301,538 2,282,449 4,982,385 1.370.661 952,491 20,634,114 4.521.122 - 7,090,110 9,002,972 2,481.968 5.521,827 - - 128,629,683 31,678,323 5.982.191 8.668,290 13,238,622 - 8,972.020 14,238,501 - 4,269.860 1,950,287 - 2,682,440 1,429,700 - 2,403,004 3,083,767 - 26.995,614 33,940,877 - $ 155,625.297 $ 65.619.200 $ 5,982,191 General revenues: Property tax Othertaxes Personal property replacement tax Sales and home rule tax Income tax Utility lax Gain on sale of capital assets Miscellaneous Investment income Fransfers "Dotal general revenues and transfers Change in net assets Net assets -beginning Net assets - ending 13- $ Net (Expense) Revenue and ChanCcs in Net Assets Capital Grants and Governmental Business -type Contributions Activities Activities Total - $ (7,433,313) $ - $ (7A33,313) - (46,654A22) - (46.654.422) - (16,981212) - (16,981212) 117,569 (2,541,664) - (2,541.664) - (16,112,992) - (16,112,992) - 4.394,830 - 4394,830 - (5.521.827) - (5,521,827) 117,569 (90.851,600) - (90.851,600) - - 4.570.332 4,570,332 - - 5,266,481 5.266,481 - - (2,319,573) (2.319,573) - - (1,252,740) (1,252,740) - - 68M63 680,763 - - 6,945,263 6,945.263 117,569 (90,851,600) 6,945,263 (83,906.337) 46,946,974 - 46,946.974 8,854,363 - 8,854.363 1,413,364 - 1,413,364 16.172,072 - 16,171072 6,827642 - 6,827,642 8,537;098 - 8,537,098 166,532 - 166;532 3,652,684 1.286.823 4,939,507 (5,115,939) 5,115.939 - 87,454.790 6,402,762 93,857,552 (3;396,810) 13.348,025 9,951.215 86338,064 171,412,099 257,750.163 $ 82,941,254 $ 184,760.124 $ 262701,378 -14- (ATV OF EVANS'1'ON, ILI,INOIS Governmental funds balance Sheet I-ebmary 29, 2008 Nonnw,lor 1 olal Capital Governmental Governmental General Improvements Funds funds Assets Cash and equivalents $ 13,755277 $ 11,960,360 S 26,247,787 S 51,063,424 Investments 2,000,000 2,720,670 4,816 843 9,537,513 Receivables ]'Iopal 4' taxes (net of allowance) 15381,869 - 31,106,423 46,489,292 Accounts - - 3,498 3,498 Notes (net of allowance) - - 6,047,186 6,047,186 Special assessments - - 1,087,014 1,087,014 Accrued uneiest 17,929 18393 12,274 49,496 Other 1.709806 - 243,6o8 1,9S3,474 Building held for resale - - 410,000 410,000 Due G out other governments 6,846,587 33,373 221,734 7,101,694 Due front other funds 623,615 196,71)9 4,501260 5,321,674 Other assets 18,094 - - 18,094 'Total Assets S 40,353,077 S 14,929,595 S 74,697,687 S 129,980,359 Liabilities and I,und Balances Liabilities Vouchers payable $ 1,737,365 $ 1015,037 $ 344,994 $ 3,097,396 Accrued payroll 2,016,915 - 2 016,915 Compensated ahsenccs payable 611,907 - - 611,907 Other 178,694 - 2,880 181,574 Due to other governments - - 3,075 3,075 Due to other funds 186,480 1,992 4,673,158 4,SGI,630 Defer red revenues 9,674201 - 21,578,054 3125:255 I oral Liabilities 14,405562 1,017,029 26,602,161 42,024,752 Fund Balances Reserved 1,107,516 - 29,329,490 30,43Z006 Reserved for l fUD Approved Plonects - - 410,000 410,000 Unreserved designated 5,426,091 13 912,566 11,706,948 31,045,605 Unreserved Speu:d revenue funds - - 6,649,088 6,649,088 General find 19,413,908 - - 19,413908 'food Fund Balances 25,947,515 13,912 566 48,095,526 87,955 607 Total Liabilities and Fund Balances $ 40,353,077 S 14 929,595 S 74,697,687 Amounts reported for governmental activities in the statement of net assets are different because Lapital'avwts used In governmental activities are not financial reSOnIUS and, therefore, are not reported In the funds 140,652,501 Long-term liabilities, Including bonds payable, compensated absences payable, and pension Contributions p,iyallle, are not due and payable in the Current pet and and therefore, are not reported In the goverrunenlal [finds (151,059,057) OPB13 liability payable Is not due and payable tit Ibe current period and therefore, Is not reported In the governmental funds (296,588) interest acrrual from last intemst paymciat (December I, 2007 or,lanuary 1, 2008) to February 29, 2008 (1,083911) I be net assess of the internal service fund are Included in the governmental activities In the statement of net assets 6,772 702 Net assets of governmental ae.lrvihes S 82,941,254 I'he accompanying notes dre an mtcgral part of this statement -15- CITY OR EVANSTON, ILLINOIS Governmental Funds Statement of Revenues, Fxpendnures, and Changes in Fund Balances Year ended February 29, 2008 Revenues 'razes $ 1 wenses and permits Special asscssncrus Intergovernmental Charges for services Pines and forfeits Investment income Miscellaneous Total Revenues Expenditures Current General management and support Public safety Public works I Icallh and human resource development Recreation and cultural opportunities I lousing and econonue development Debt set vice Principal Interest Fiscal agent fees Capital outlay 7"oml Fxpendnures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) "Pransfers in Tianstcr:s out Issuance of debt Premiums and discounts Escrow funding 'I"olal Other Financing Sources (I ]sea) Net Change in Pond Balances Fund Balances-Bcgimung of Year Fund Balances - End of Year $ The accompanying notes are an integral part of this statement General 42,893,729 10,275,694 17,582,733 7,732,399 4,660,258 623,965 2,998,910 96.767,588 15,396,084 32,460,477 16,176,198 4,182,385 19,191 253 3,486,934 Nonma)or capital Governmental lmmovancnls Funds $ 32.872,849 $ 520,239 400,000 4,641,812 867,191 1,206,409 2,473,600 1,436,1 16 562,118 709,910 515,428 - 11,669,480 89,893,331 14,893,052 (3,125,743) (12,419,452) 4,832,493 1,825,000 (1,952,400) (2,000,000) 14,115,000 329,980 2.880,093 14,269,980 (245,650) 1,850,528 26,193,165 12,062,038 25,947,515 $ 13 912,566 $ 910,872 911,095 40,856,867 1,357,732 9,443 422 1,981,331 800,000 411,509 3,601,918 10,815,000 5,128,328 41,523 746,910 34,327,673 6,529,194 2,317,650 (I 1,391,772) 16,270,000 729,231 (15,590,051) (7,664,942) (1,135,748) 49,231,274 48,095,526 $ Total Governmental Funds 75,766,578 10,275,694 520,239 22,624,545 7,732,399 4,660,258 3,401,928 5.116.414 130,098,055 18,189,932 42,466,017 18,867,439 4,982,385 19,118,190 7,088,952 10,815,000 5,128,329 41,523 12,416.390 139,114,056 (9,016,001) 8,975,143 (15,344,172) 30,385,000 1,059,211 (15,594051) 9.485.131 469,130 87,486,477 87,955,607 16- This page has been intentionally left blank. CITY OF FVANSTON, ILLINOIS Reconciliation of the Statement of Revenues, Hxpendilures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended February 29.2008 Amounts reported for governmental activities in the statement of activities arc different because: Net change in fund balances - total governmental funds $ 469,130 Governmental funds report capital outlays as expenditures. I lowever, in the statement of activities; the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. 6321.525 'file repayment of the principal of long-term debt consumes the current financial resources of governmental funds. These transactions, however, have no effect on net assets. 26.370,000 Issuance of 2007 Bonds provides current financial resources to governmental funds, while the repayment of the principal of long term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net assets. Governmental funds also report the effect of bonds premiums, discounts, and similar items when debt is first issued. (31.098.368) Sonic expenses reported in the statement of activities do not require the use of cunenl financial resources and, therefore, are not reported as expenditures in governmental funds. (4378,105) OPHB benefit expense reported in the statement of activities does not require the use of current financial resources and. therefore, is not reported as expenditures in governmental funds. (296,588) Interest acrrual fiom last interest payment (December 1, 2007 or January I, 2008) to February 29, 2008. (1,083,911) Internal service funds are reported separately in the fund financial statements. 299.507 Change in net assets of governmental activities $ (3.396;810) The accompanying notes are an intcglal pan oflhis slalcnlent -17- CITY OF EVANSTON, ILLINOIS Piopnclary hunds Statement of Net Assets Febivary 29, 2008 Assets Current Assets Cash and equivalents Investments Rest cted cash and equivalents and investments Receivables Accounts - billed Accounts - unbdled Accrued interest Other Inventories 1 otal Current Assets Noncurrent Assets Resuicted cash and equivalents and Investment¢ Capital Assets Land Construction in progress Artwork Capital assets being depreciated Less accumulated depreciation 'Dotal Capital Assets Other Assets Receivables Notes total Noncunenl Assets Into] Assets the accomprap,ng nacs arc an in Iq,,.1 pan ufda, emozia,ni Business -type Acnviucs- Enterprise Funds Governmental Activities- Nomnalor Internal Sherman Proprietary Service Water Sewer Gurnee Funde Total Funds S 8,302,163 $ - S 7,230,452 S 6,566,391 $ 22,109,006 $ 801,782 - - - 1,000,000 1,000,000 6,928,631 6,593,651 - 6,593,651 - 961,425 305,923 - - 1,167,348 - 856067 2,133,037 - - 2989,104 - 26,051 10,541 - 10,397 46,999 - 20,419 - - 8,624 29,043 27,299 633 008 235,729 - - 868.737 373,030 10,099,133 9,279,991 7,239,452 7,595 412 34,802,878 8,130,742 2,237,970 - - - 2,237,970 - 555,415 - - 2,742,522 3,297,937 - 3,4a6,358 15,201,175 - - 18,757,533 - - - 251,624 - 251,624 - 63200,114 22US3,152 40,926,869 36883,470 361,063,605 19,968,930 (16856,157) (28,727924) (1,788,448) (7,929,016) (55,300,545) (14,26Q777) 50,365,730 206,616,403 39,390,045 31,697,976 329,070,154 5699,153 - - - 264000 264,000 - 52,603,700 206,616,403 39,30,045 31961,976 330,572,124 5,699,153 63,302,833 215,895,284 46,629,497 39,547,388 365,375,002 13,829,895 m Liabilities Current Liabilities Vouchers pavablc Vouchers payable - restricted INaest payable Interest payable - restricted Revenue bonds payable Revenue bonds payable - restricted Compensated absences payable General obligation bonds payable General obligation bonds payable - restricted 1 lnamortized hond expenses and discount Clauns payable Notes payable - Sewer IEPA Loans - restricted Due to other funds 'Total Cu rent LwN lit tea Long -'fern Lmbibties Notes payable - Sewer IHPA Loans General obligation bonds payable OPF13 bahihty payable Revenue bonds payable Unannorlved bond expenses and discount Clainns payable "I otal Long-term Liabilities Total Liabilities Net Assets Invested in capital assets, net of related debt Restricted for debt service Restricted for capital improvements Unrestricted Total net assets Business -tyre Activities- Enterprise Funds Nonma)or Sherman Noprebry Water Sewer Gaiaae Funds $ 520,108 S 171,600 S 134,070 $ 148,116 1,006,929 - 19,485 994,797 - 425,000 85,000 - - 465,685 92,343 - - - 4,340,000 - 2,305,000 - 7,534,224 - 149,078 1037,189 2,749,741 1810,472 13,142,082 7,223,811 Governmental AcOvttjcs- Internal Service Totals Funds 87,244 S 913,022 S 279,124 - 1,155,045 - 33,166 33,166 - - 1,013,282 - - 425,000 - - 85,000 81324 639,352 101,620 4 675,000 9,015,000 - - 2,305 000 - (4,060) (4,060) - - - 3,34J 952 - 7,534,224 - 204,357 4,139,365 42,114 5,077,031 27,253,396 3,772 810 - 95,870,663 - - 95,876,663 - - 14060,000 39,325000 1,825,000 55,210,000 - 19,327 4,308 - 4,537 28,172 5,883 2,245,000 - - - 2,245,000 - 15,806 (14,159) - - 1,647 - - - - - - 3,278,500 2,280,133 109,926812 39,325,000 1,829,537 153,361,482 3,284,383 4,090,605 123,068,894 46548,811 6,906,568 180,614,878 7,057,193 51,403048 86,854,675 (4,274,955) 25,202,036 159,184,804 5,699,153 1,186,369 - - - 1,186 369 - 800,000 - - - 800,000 - 5,822,811 5,971,715 4,355,041 7,438,784 23 599,451 1,073,549 $ 59,212,228 S 92826,390 $ 80,686 S 32640,920 $ 184,760,124 $ 6,772,702 lm This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Proprietary Funds Combating Ling Statement of Revenues, Expenses, and Changes in fund Net Assets Year ended February 29, 2008 Business -type Activities- Bnterptise Funds Governmental Activilics- Nonma)or Internal Sherman Proprietary Service Water Sewer Garage Funds Total Funds Operating Revenues Charges for services $ 12,791,917 $ 14,229,109 $ 1,950,287 $ 4,4M613 $ 33,431,926 $ 6,919,400 Miscellaneous 446,705 9.392 - 52,854 508,951 21,893 Total Operating Revenues 13,238,022 14,238,501 1,950,287 4,513,467 33,940,977 6.941,293 Operating Expenses Excluding Depreciation Administration 668,969 1,732,334 - 514,963 2,916,266 - Operations 6,469,097 449,038 1.350,016 3,210,454 11,478,595 7,511,917 Total Operating Expenses Excluding Depreciation 7,138,056 2,181,372 1.350,016 3,725,417 14,394 961 7,511,917 Operating Income (Loss) Before Depreciation 6,100,566 12,057,129 600.271 788,050 19,546,016 (570,624) Depreciation 1,405,617 3.086,647 1,023,172 888,794 6,404,230 1,397,026 Operating Income (Loss) 4,604,949 8,970,482 (422,901) (100,744) 13,141,786 (1,967,650) Nonoperating Revenues (Expenses) Investment income 548,392 277,292 138,671 322,468 1,286,823 250,756 Interest expense (125.746) (3,698,723) (1,896,672) (464,917) (6,186,058) - Bond expenses and amortization of discount 1,129 (5,278) - (6,316) (10,465) - Gain (loss) on disposition of assets - - - - - 16,401 Total Nonoperating Revenues (I xpenscs) 423,775 (3,426,709) (1,758,001) (148,765) (4,909,700) 267,157 Income (Loss) before transfers and conhibutions 5,118,724 5,543.773 (2,180,902) (249,509) 8,232,086 (1,700,493) Capital Conti ibution - Governmenlal Activities - - 251,624 495,286 746,910 - Trinsfets In (Out) Central Business Tax htcrement District fund - - 1,872,829 4,600,000 6,472,829 - hnsutance)'und (2,000,000) - - - (2,000,000) - Washington National'Tax Increment District Fund - - 500,000 - 500,000 - CapnallinptovementPund 2,000,000 - - - 2,000,000 - Waler Fund - - - - - 2,000,000 Sewer Fund - - - - - - Economic Development Fund - - - 650,000 650,000 - Gencral Fund (2,693,600) - - (560.200) (3,253,800) - Total Transfers la (Out) (2,693,600) - 2,372,829 4,689,800 4,369,029 2,000,000 Change in Net Assets 2,425,124 5,543,773 443,551 4,935,577 13,349,025 299,507 Total Net Assets - Beginning of Year 56,787 104 97,282,017 (362,865) 27,705,243 171,412,099 6,473,195 'total Net Assets - End of Year $ 59,212,228 $ 92,826,390 $ 80,686 $ 32,640,820 $ 184,760,124 $ 6.772,702 7 he accompanying notes are an integral part of tins statement -20- CITY OF EVANS'I-ON, ILLINOIS fliopuctary Funds scoli' lfnl ofC,i h Flows Year ended f-ebt uap• 29, 2008 Cash Ilovs porn 01maung Activities Recetpls boar amlonlets and users Receipts ficar label fund set vices provided payments to suppliers Payamnts to employees Payments for late, fiord set vices provided Net Cash Prov,ded by (Used for) Operating Activities Cash Floes fiom Noncapi al 1\aanclag Activities 'transfers In Not) Cential Business 1'ax laciement District Fund Insurance Fund Washmgloo National Tax Inuenlent District fund Capital haprovemcnt Fund Water fund Economic Development Fund General Prod Net Cash Provided by (Used for) Noucapital f,nanmag Activities Cash Plows from Capital and Related Pulanung Activities Sale of capital assets Acquisition and construction of capital assets Proceeds peal notes receivable Principal pat, on revenue bonds Interest paid on revenue bonds Pnac,pal paid oil general obligation bonds laciest paid oil general obligation bonds Punc,pal paid on ]EPA loans Intere,l paid oil ]EPA loans Proceeds from (EPA loans Net Cash (Used flat Capital and Related F,aaacmg Activities Cash flows fiom Investing Activities Purchase ofmvcsimeuls Interest income Net Cash Provided by Investing Activates Net Increase (Decrease) ur Cash and Hlnrvalcnts Cash and Rgmvalcas 13eganag of year End of yca, Reconciliation Cash and equivalents Carient Cash Resti,cted Carcnt Cash Unrestricted Restucied Non C'n, rear Cash The auompaaymy sate, me as uacyrnl pan of Ws sta se,,, Eusmess-lilac Acttvilms- Fermi se Funds Governmental Activmes- Nonmajor Ialmnal Sherri.... Propuctary Service Water Suwer Gaiaee Funds Total Funds S 13,610,902 14204,198 S 1,950,297 S 4,520,831 S 34.286,218 S 7,061520 121,351 1,109,006 (726,992) 5,500 509,865 125,935 (6,328,996) (1,754,547) (1,357,507) (3,303,858) (12,744,908) (5,026,501) (688,197) (1,746,601) - (520,921) (2,955,719) (1,589,992) - - 3,476,327 193,545 3659,872 6,715,160 11,812,056 3341115 885,097 22754,428 570,962 1872829 4,600,000 6,472,829 - (2,000,000) - - - (2,000,000) - - - 500,000 - 500,000 - 2,000,000 - - -=000,000 - (150,000 650,000 - (2,69.3,600) - - (560,200) (7253,800) - (2,69.3,600) - 2,372,829 4,689,800 4,369,029 2,000,000 - - 16,401 (3,306,577) (10 156,924) - (503,928) (13,967,429) (.300,429) - 5,092,574 - 5,082,574 - (485000) - - - (485,000) - (128,713) - - - (128,713) - (2,155,000) (3,610,000) (4,510,000) (10,295 000) (1,040,619) (1,896,672) (464917) (3,402,208) - (6;874,858) - - (6,87058) - (2,658,104) - - (2,658,104) 10,794 824 - - 10,794,824 - (3,920,290) 112090.6811 (424,098) (5,498,845) (21,933,914) (294,028) 548,392 277292 139,671 548,392 277,292 138,671 619,662 (1,331) 5,429,517 - - (2,100,756) 322,468 1286,823 250.756 322,468 1,286.823 (1,850,000) 399,520 6,476,366 416,934 9,890,471 6,594,994 1809,935 7,167871 25,463,26) 364,848 S 10,540,133 S 6,593,651 S 7,239,452 S 7.566,391 S 31939,627 S 801,782 S 8,302,163 $ - S 7,239,452 S 6,566,391 S 22,108,006 $ 801792 - 6,593 651 - - 6,593,651 - - - - 1,000,000 1,000,000 - 2,237970 - - - 2237,970 - S 10,540,133 S 6,593,651 S 7,239,452 F 7,566,391 S_31_939,627 S 801782 21- Comaued CITY OF EVANSTON, IIAANOIS Proprietaryponds Statement of Cash Moos - Continued Year ended February 29, 2009 Reconciliation of Opermmg Income (Loos) to Net Cash Provided by (Used fur) Operating Auntnes Operating income (1oss) Depreciation Changes ur nascls and babelmes hmrcawldeciease in A/R nnxelleneous Other receivables ACWnnIS receivable luuA f and receivable invcntoncs Accrued interest receivable Cmnpcnaated abwmv, Acmned payroll Accounts pay able lnterfund payable OP1.13 habihq, payable Voucher s payable Voucherspayable (jeslucled) Interest payable Ueslncted) Clauns payable Net Cash Provided by (Used fop Operatnlg Activities 13nvnees-irpe Activities- Fnletpnse Funds Nomna)or Sbeuaau Ropnetary Water Seer Oamee funds focal Governmental Acnvdies- Iatcmal Sc"u,c Funds $ 4694949 $ 8,970492 $ (422,901) $ (100,744) £ 13,141,786 S(1967,650) 1,405,617 3,086,647 1,023,172 888,794 6,404,230 1,397,026 - - - - - 8025 55,862 - (7,175) 48,687 36,202 224889 (23,762) - 5,000 206,127 121,351 1,109,006 (726,992) 5,500 508,865 125,935 (88,932) 119,772 - - 30,840 (18,072) 91,529 (10,541) - 9,539 90,527 - 14,680 8,875 - 8,477 52,032 18,147 (73,235) (23,142) - (18,972) (115,349) (29,690) - - - - (15259) - - 3476,327 183,545 3,659,872 - 19,327 4,309 - 4,537 28,172 5,883 159,242 (124,158) (7491) (85,248) (58,655) 1,162 70,881 (UK516) - - (1,223,635) - - (10,915) - (8,156) (19,071) - - - - - 932,252 S 6,715,160 $ 11,812;056 S .3,342,115_ $ 885,097 S 22,754,428 $ 570,962 Capital Contribution Capital contributions were made from governmental activities to the Sherman garage fund in the amount of $251,624 and Maple garage fund in the amount of $495,286 "I he zocontp,nquny noes are an nncyral pun of this stntemcnt 22 - CITY OF EVANSTON, ILLINOIS Fiduciary Funds Statement of Net Assets February 29, 2008 Assets Cash and short-term investments Receivables Accrued interest Contribution receivable - Due from othcr funds Total Receivables Investments, at fair value U.S. Governinent obligations Common stock Mutual funds Total Investments Total Assets Liabilities Vouchers payable Due to special assessment bondholders Total Liabilities Net assets held in trust 'The accompanying notes arc an integral part of this statement -23- Pension Special Assessment Trust Funds Agenev Fund $ 7,633,080 $ 21,073 463,095 3,721,436 4,184,531 - 55,079,916 - 11,582,476 - 29,407,699 - 96,070,091 - 107,887,702 21,073 18,604 - - 21,073 18,604 21,073 $ 107,869,098 $ CITY OF FVANSTON, ILLINOIS Fiduciary Funds - Pension Trust Funds Statement of Changes in Plan Net Assets Year ended February 29, 2008 Pension Trust Funds Additions Contributions Employer $ 8,489,281 Plan members 2,042,844 Total contributions 10,532,125 Investment income Net change in fair value of investments (421,274) Interest 3,871,995 Total investment income 3,450,721 I.ess investment expense 329,971 Net investment income 3,120,750 Total additions 13,652,875 Deductions Benefits 11,278,855 Refunds of contributions 64,234 Administrative expense 63,795 Total deductions 11,406,884 Net increase 2,245,991 Net assets held in trust for pension benefits Beginning of year 105,623,107 Hnd of year $ 107,869,098 'Ilie accompall)ong notes are an integral part of this Statement -24- This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements Pace Note 1. Summary of Significant Accounting Policies A. Reporting Entity 28 B. Government -wide and Fund Financial Statements 29 C. Fund Accounting 30 D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 31 E. Cash and Equivalents 34 F. Investments 34 G. Inventories 34 It. Capital Assets 34 1. Compensated Absences 35 J. Long -Tenn Obligations 35 K. Self -Insurance 36 L. Property Taxes 36 M. Fund Equity 37 N. htterfund Transactions 37 O. Use of Estimates 37 P. Land held for resale 37 Note 2. Reconciliation of Government -wide and Fund Financial Statements A. Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government -wide Statement of Net Assets 38 B. Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government - wide Statement of Activities 38 Note 3. Stewardship, Compliance, and Accountability A. Budgetary Information 40 B. Deficit Fund Equity 42 Note 4. Deposits with Financial Institutions and Investments A. Types of Accounts and Securities 42 B. Pooling of Cash and Investments 42 C. Types of Investments 43 D. Deposits 45 E. Reconciliation of Unrestricted and Restricted Cash and Investments 45 -25- CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements Pau (continued from previous page) Note 5. Receivables A. Sununary of Receivables 47 B. Notes Receivable -- Special Revenue Funds 47 Note 6. Capital Assets A. Capital Asset Activity 48 B. Construction Commitments 50 Note 7. Inter funds A. Interfund Accounts 51 B. I nterfund '11 ansfers 55 C. Capital Contribution 57 Note S. Operating Leases 58 Note 9. Long -Term Debt A. Changes in Long -Term Debt 59 B. General Obligation Bonds Payable 62 C. Special Service District Bonds Payable 64 D. Revenue Bonds Payable 64 E. Notes Payable- Sewer IEPA Loans 65 F. Prior Years' General Obligation Bond Defeasances 65 G. Prior Years' Special Service District 45 Bond Defeasances 66 11. Post Employment benefits other than Pensions 67 Note 10. Fund Equity A. Restrictions of Net Assets -Water Fund 70 B. Restricted Net Assets - Fiduciary Funds 70 C. Reservations of Fund Equity 71 D. Unrestricted Fund Equity - Designated 72 Note 11. Individual Fund Activities A. General Obligation Debt Service Fund 73 B. Water Fund 73 C. Special Service Disti ict No. 4 73 Note 12. Risk Management. Claims and Judgments 74 Note 13. Subsequent Events 75 26- CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements Page (continued from previous page) Note 14. Contingencies 75 Note 15, Joint Ventures A. Northwestern University 75 B. Solid Waste Agency of Northern Cook County 76 C. Evanston Housing Corporation 78 Note 16. Deferred Compensation Plan 79 Note 17. Defined Benefit Pension Plans Illinois Municipal Retirement Fund A. Plan Description 80 B. Funding Status and Progress 80 C. Annual Pension Cost 81 Police and Firefighters' Pension Plans D. Plan Descriptions 82 E. Summary of Significant Accounting Policies - Basis of Accounting 84 - Method Used to Value Investments 84 F. Contributions and Reserves 84 G. Concentration of Investments 86 It. Three -Year Trend Information — Pension Trust Funds 86 1. Pensions - Detailed Statement of Net Assets 87 J. Pensions - Detailed Statement of Changes in Net Assets 88 K. Pensions -Actuarial Valuations 89 -27- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTEI. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of Evanston (City) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units (hereinafter referred to as generally accepted accounting principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Reporting Entity The City was incorporated in 1863. The City operates under a Council -Manager form of government, is a home yule municipality as defined by Illinois state law, and provides the following services as authorized by its charter: general management and support, public safety, public works, health and human resource development, recreational and cultural opportunities, and housing and economic development. As required by GAAP, these financial statements present the City (the primary government) and its component unit, an entity for which the City is considered to be financially accountable. Although the component unit is legally a separate entity, it is governed by the same board; therefore, data from this unit is blended with data of the City. Blended Component Unit: The Town of the City of Evanston, Illinois (Township) is a separate legal entity which administers General Assistance, a public welfare program assigned by Illinois law to townships. Eligible clients receive General Assistance for food, shelter, and medical needs. Through the town -fund levy, the Township also supports a number of community action programs, which provide direct services to welfare recipients. The Township is governed by a Township Board of Trustees and provides services within the same geographic boundaries of the City. The 'Township Board of Frustees are the same individuals as the City Council. The Township board levies taxes and is responsible for adopting the Township budget and approving payment of bills. The Township has two elected officials: the Supervisor and the Assessor, each elected for four-year terms. The Supervisor is responsible for Township funds and for the administration of General Assistance. The Assessor does not actually assess property; that function is carried out by the Cook County Assessor. The Township Assessor serves as a taxpayer's advocate, helping citizens with tax -related questions. The Assessor also works to assure equity of assessments, and maintains records of building and demolition permits and of all tax-exempt properties. The Township Board of Frustees can issue debt on its own behalf, and such debt can be issued in the T'ownship's name alone. 28 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Eiscal Year Ending February 29. 2008 NOTE]. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued A. Reporting Entity - Continued The Township is included in the Reporting Entity due to its financial accountability because the Township Board of Trustees are the same individuals as the City Council members. The Township has a March 31 fiscal year-end. Amounts included in this report are as of and for the year ended March 31, 2007. This report is the most recent one available. Complete financial statements for the Township may be obtained at the following address: Town of the City of Evanston 1910 Main Street Evanston, Illinois 60201 Joint ventures: The City participates in three joint ventures, which are reported as nonequity governmental joint ventures and are described in Footnote 15. The joint ventures are: City of Evanston and Northwestern University Research Park; Solid Waste Agency of Northern Cook County (SWANCC); and Evanston I lousing Corporation. B. Government -wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the City. The effect of interfund activity has been removed from these statements excluding interfund services provided. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. 29 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE]. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued B. Government -wide and Fund Financial Statements - Continued Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded font the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor funds are reported in the supplementary information. C. Fund Accounting The City uses funds to report on its financial position and the results of its operations. A fund is a separate accounting entity with a self -balancing set of accounts. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. Funds are classified into three categories: governmental, proprietary, and fiduciary. Each category, in turn, is divided into separate "fund types." Governmental funds are used to account for all or most of the City's general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general capital assets (capital projects funds), and the servicing of general long-term debt (debt service funds). The general fund is used to account for all activities of the City not accounted for in some other fund. All Township funds are considered special revenue funds within the governmental funds category. Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful for sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the City (internal service funds). Internal service funds are included with the governmental funds on the government -wide financial statements. Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the City. When these assets are held under the terms of a formal trust agreement, a permanent fund is used. Agency funds generally are used to account for assets that the City holds on behalf of others as their agent. The pension trust fund accounts for the activities of the Police and Firefighters' Pension funds, which accumulate resources for pension benefit payments to retired police and fire personnel. 30- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —Continued D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers property taxes as available if they are collected within 60 days of the end of the current fiscal period. A six month availability period is used for revenue recognition for all other governmental fund revenues. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded when payment is due or when amounts have been accumulated in the debt service fund for payment to be made early in the following year. The following revenues associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Taxes Fines Property Traffic fines Sales (Home Rule) Utility Intergovernmental Personal property Motor fuel tax allotments Grants Supplemental Security Income reimbursements Licenses Income taxes Sales taxes Use tax Franchise fees Charges for services Investment income Recycling program fees and sales 31- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE L SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —Continued D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The C'almal 6nprovemenis Fund accounts for the City's capital improvement program. The program includes improvement to public buildings, paving of City streets, improvement of recreational facilities and other improvements. Governmental funds report unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. The City reports the following major proprietary funds: The Water Fend accounts for the provision of water services to the residents of the City and the sale of water to the Village of Skokie, Illinois, and the Northwest Water Commission. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operation, maintenance, financing and related debt service, and billing and collection. The Seiner Fund accounts for the provision of sewer repair and improvement services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, financing, and billing and collection. The Sherman Garage Fund accounts for the provision of the public and residential parking facility on Sherman Avenue. All activities are accounted for including administration, operations, financing and revenue collection. Additionally, the City reports the following fund types: Internal Service fords account for the fleet management and insurance services provided to other departments or agencies of the government, or to other governments, on a cost reimbursement basis. Pension Trust finds account for the activities of the Police and Firefighters' Pension Funds, which accumulate resources for pension benefit payments to qualified public safety employees. 32- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year finding February 29, 2008 NOTEI. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —Continued D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation — Continued Agency ,funds account for the cash received from property owners on capital improvement special assessments. Such amounts collected will be forwarded to bondholders. The City is not obligated in any manner for this debt and is only acting as agent for the property owners. The City's enterprise funds apply all applicable GASB pronouncements as well as relevant Financial Accounting Standards Board (FASB) pronouncements issued on or before November 30, 1989, unless those pronouncements conflict or contradict GASB pronouncements, in which case, GASB prevails. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. Amounts reported as program revenues include 1) charges to customers for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including assessments. Internally dedicated resources are reported as general revenue rather than as program revenue. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds and of the City's internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. The City reports unearned revenues on its government funds statements. Unearned revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when resources are received by the City before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. If subsequent revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for unearned revenue is removed from the combined balance sheet and the revenue is recognized. 33 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTEI. SUMMARY OF SIGNIFICANTACCOUNTINGPOLICIES—Continued E. Cash and Equivalents Cash and equivalents represent cash on hand, cash deposited in interest -bearing and noninterest-bearing checking accounts, and investments in money markets, certificates of deposit, and treasury obligations with maturities of three months or less at the date of acquisition, and cash deposited with the Illinois Funds. F. Investments Investments consist of certificates of deposit, treasury obligations, government agency obligations, and insurance contracts with maturities greater than three months. Investments of the pension trust funds are carried at fair value. Investments with over one year to maturity are reported at fair value. All other investments are stated at cost or, for U.S. government securities, amortized cost. These securities may be purchased at a premium or discount which is amortized over the life of the investment. This valuation method approximates fair value. G. Inventories Inventories in the Water, Sewer, and Fleet Service Funds are valued at the lower of cost (first -in, first -out) or market. Inventory amounts are recorded on the basis of a physical count. 14. Capital Assets Capital assets, which include property, plant, and equipment and infiastructure assets (e.g. roads, sidewalks, trails, bridges, and similar items), are reported in the applicable governmental or business -type activities colunms in the government -wide financial statements. Capital assets are defined by the government as equipment and vehicles with an initial, individual cost of more than $20,000, or infrastructure, buildings, or building improvements with an initial, individual cost of more than $100,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Infrastructure acquired prior to the February 28, 2003 implementation of GASl3 34 has been reported. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. 34 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —Continued IL Capital Assets - Continued Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives: Description Land improvements Leasehold improvements Plant Transmission and distribution system Sewer system and underground lines Parking meters 1. Compensated Absences Years Description Years 10-100 Buildings and improvements 10-50 10-100 Office equipment and furniture 5-15 20-100 Machinery and equipment 5-15 Infrastructure 30-100 5-100 Library collections 7 75-100 15 It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All payments due in the event of termination are accrued when incurred in the government -wide and proprietary fund financial statements. The General Fund has been used in prior years to liquidate the liability for compensated absences of governmental funds. J. Long -Term Obligations In the government -wide financial statements and proprietary fund types in the fund financial statements, long- term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds icecived, are reported as debt service expenditures. 35 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTEI. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued K. Self -Insurance The City is self -insured to certain limits for general liability claims and for workers' compensation insurance. A liability is recorded when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Claims liabilities are based on estimates of the ultimate cost of reported claims including future claims adjustment expenses. General liability and workers' compensation claims are paid out of the Insurance Fund. L. Property Taxes Property taxes are collected by the Cook County Collector and are remitted periodically to all taxing bodies, including the City and Township. Distributions are made more often during the two main collection periods. Property taxes are levied on a calendar year basis by passage of a tax levy ordinance. The property tax calendar for Cook County is as follows: Lien Date Levy Date First Installment Due Date (one-half of prior bill) Second Installment Due Date (balance of total bill) January 1 of Levy Year December of Levy Year March 1 of Year following Levy Year August or September of Year following Levy Year Property tax revenues are recognized when they become both measurable and available. On this basis, property tax revenue includes all cash distributions of property tax received during the fiscal year between March 1, 2007 and February 29, 2008 and all property tax collections received within 60 days after the end ofthe fiscal year. The adjustment necessary to convert GAAP basis property tax revenues to budgetary basis is shown in the notes to the required supplementary infounation in the section on Budgets and Budgetary Accounting. The Town Fund and General Assistance Fund unearned revenue represents the net portion of the 2006 property tax levy that will not be collected within 60 days of the Towmhipi s March 31, 2007 year-end. A 5% allowance for loss is reflected in the'Fownship financial statements. 36- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE]. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued M. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent management plans that are subject to change. N. Interfund Transactions Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. O. Use of Estimates )it preparing financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ front those estimates. 1'. Land field for Resale In the Governmental Funds the cost of land held for resale is reported as an asset with increases and decreases for purchases and sales. 37 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 2. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government -wide Statement of Net Assets The governmental fund balance sheet includes a reconciliation between fund balance - total governmental funds and net assets —governmental activities as reported in the government -wide statement of net assets. One element of that reconciliation explains that "Long-term liabilities, including bonds payable, compensated absences payable, and pension contributions payable, are not due and payable in the current period and, therefore, are not reported in the funds" The details of this $151,059,057 difference are as follows: General obligation bonds payable $ 115,220,000 Special service district bonds payable 2,785,000 Bonds premium liability 4,861,441 Compensated absences payable 9,749,998 Pension contributions payable 18,442,618 Net adjustments to reduce find balance — total governmental funds to arrive at net assets — governmental activities. $ 151,059,057 B. Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government -wide Statement of Activities The government fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances -total governnental funds and changes in net assets of governmental activities as reported in the government -wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as expenditures. However. in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense:" The details of this $6,321,525 difference are as follows: Capital outlay $ 13,025,988 Depreciation expense (6,704,463) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ 6,321,525 - 38 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 2. RECONCILIATION OF GOVERNMEN'r-WIDE AND FUND FINANCIAL STATEMENTS — Continued B. Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government -wide Statement of Activities - Continued 2. Another element of that reconciliation states that "The repayment of the principal of long-term debt consumes the current financial resources of governmental funds. These transactions, however, have no effect on net assets." The details of this $26,370,000 difference are as follows: Principal repayments General obligation debt $ 26,085,000 SSD#5 Bond 285,000 Net adjustment to increase net changes in fund balances — total governmental funds to arrive at changes in net assets of governmental activities $ 26,370,000 3. Another element of that reconciliation states that "Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds." The details of this ($4,378,105) difference are as follows: Compensated absences Amortization income pension contributions $ 64,592 379,621 (4,822,318) Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ (4,378,105) 4. Another element of that reconciliation states that 'Issuance of 2007 Bonds provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds." The details of this ($31,098,368) difference are as follows: 2007 Bond Series $ (30,385,000) Bonds premium liability (713,368) Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ (31,098.368) 39- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following March 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public budget hearings are conducted. Taxpayer comments are received and noted. 3. The budget is legally enacted through passage of a resolution. 4. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. There were budget allocations within General fund but the total did not change. 5. Budgets are legally adopted on a basis consistent with GAAP except that (1) property taxes are budgeted as revenue in the year they are levied, (2) debt service payments are budgeted upon tax levy for such purposes, (3) encumbrances are recorded as the equivalent of expenditures for budget purposes, and (4) interest earned on escrow accounts is budgeted as revenue in the year of debt repayment rather than when earned. For purposes of preparing the General Fund - Budget and Actual (Budgetary Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balance, GAAP revenues and expenditures have been adjusted to the budgetary basis. Blended Component Unit The Township prepares its annual appropriation ordinance, which is synonymous with its budget, using the modified accrual basis ofaccounting. The appropriation ordinance was adopted on June 12, 2006. It covers both Township funds. The Township follows procedures similar to those of the City in establishing the budgetary data reflected in the financial statements. The budget was not amended during the current fiscal year. The following City and Township funds do not have legally adopted budgets: Special Revenue Library, Neighborhood Improvement, Mayor's Special Housing, HOME., Community Development Loan, Employee Pension Contribution CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 3. STEWARDSH111, COMPLIANCE, AND ACCOUNTABILITY -Continued A. Budgetary Information - Continued Capital Projects Capital Improvements, Central Business Tax Increment District, Washington National Tax Increment District, Special Assessment The level of control (level at which expenditures may not exceed budget) is the fund. All unencumbered annual appropriations lapse at the fiscal year-end. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General Fund. Encumbrances outstanding at year-end are reported as reservations of fund balances since they do not constitute expenditures or liabilities under GAAP. The following funds had an excess of actual budgetary expenditures over original and final budget for the year ended February 29, 2008: Fund Actual Budget Excess Debt Service Fund $ 10,121,275 $ 9,910,643 $ 210,632 Southwest Tax Increment District 871,994 869,635 2,359 Howard Hartrey Tax Increment District 698,433 697,095 1,338 West Evanston 26,003 15,450 10,553 Community Development Block Grant 2,146,429 2,014,710 131,719 Affordable Housing Fund 47,564 30,000 17,564 General Fund 89,950,125 88,605,462 1,344,663 Insurance Fund -1,957,372 -1,350,000 607,372 Township -Town Fund 382,251 362,443 19,808 41- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE. 3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY -Continued B. DEFICIT FUND EQUITY The Insurance Fund, an internal service fund, had a net deficit of $420,700 as of February 29, 2008. The City plans to use current resources to pay for future liabilities. The Washington National Tax Increment District CIP Fund had a deficit fund balance of $ 194,587 as of February 29, 2008. The City plans to use current resources and possible debt proceeds to pay for future liabilities. NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS A. Types of Accounts and Securities Illinois statutes and the City's investment policies authorize the City to invest in obligations of the U.S. Treasury, in Government Sponsored Enterprises (GSE) such as Federal }-Lome Loan Mortgage Corporation (FI ILMC), Federal Home Loan Bank (FHLB), and Fannie Mae (FNMA); Bankers Acceptances as well as commercial paper rated only in the highest tier; Repurchase agrcements of the highest grade; Collateralized Certificates of Deposit issued by FDIC insured financial institutions, money market mutual funds with portfolios limited to securities guaranteed by the United States, the Illinois Metropolitan Investment Fund (IMET), and the Illinois Funds. It is the policy of the City to invest public funds in a manner whereby its investment objectives are prioritized in the following order: Safety of Principal, Liquidity, and Rate of Return. The City also seeks to maintain diversification of investments to avoid overconcentration of any one specific issuer or business sector. To mitigate interest rate risk, the City tries to structure the investment portfolio to meet daily cash flow needs so as to avoid needing to sell securities on the open market. The City seeks to attain market rates of return consistent with constraints imposed by safety and cash flow needs. The City invests to conform to all state and local statutes governing the investment of public funds. More detail is available in the City's investment policy. The Firefighters and Police Pension Funds are set up for the exclusive purpose of providing retirement and other benefits to plan participants and beneficiaries. All investments are governed and authorized by the respective Fire and Police Pension Boards. The investment objectives and parameters mirror those listed above for the City of Evanston. However, unlike the City's public funds, the Firefighters and Police Pension funds may invest in various equity accounts up to a limit of 45% of the aggregate value of each respective fund's assets. The pension funds invest to conform to all state and local statutes governing pension funds. Additional detail is available in each pension fund's investment policies. B. Pooling of Cash and Investments Except for cash and investments in certain restricted and special accounts, the City pools the cash of various funds to maximize interest earnings. Interest income is allocated to the various funds based upon their respective participation. 42- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 4. DEPOSITS WITII FINANCIAL INS77TUTIONS AND INV ESTMENTS - Continued C. Types of Investments As of February 29, 2008, the City has the following investments and maturities. Governmental and Enterprise Investment Maturities (In Y oars) Investment Type Fair Value Less Than 1 Year I - 10 More Years Equities Money Market / Liquid Assets $ 23,481,205 $ 23,481,205 $ - $ - lllinois Funds 44,434.504 44,434,504 - Mutual Funds 1,166,364 - 206,691 959,673 Federal ]-lome Loan Mortgage Corp 991,612 991,612 - - Federal Home Loan Bank 7,647,950 1,663,620 5,984,330 - Fannie Mae 5,200,722 1,989,944 3,210,778 - U.S. Treasuries 429,886 - 429,886 - Certificate ofDeposits 4,950,000 2,950,000 2,000,000 - Corporate Notes 746,157 - 746,157 - i'otal Governmental and Enterprise Investment Fund $ 89,048,400 $ 75,510,885 $ 12,577,842 $ 959,673 1MET Money Market Fifth Third Money Market First Bank Money Market Fidelity Money Market JF Morgan Money Market Vanguard Money Market Dotal Money Markel Township Investment Type Illinois Funds Total Township Investment $ 5,161,835 5,535,129 3,011,490 88,080 9,306,533 378,138 $ 23,481,205 Investment Maturities (In Years) Fair Value Less Than I Year I - 10 More Years Equities $ 1,105,711 $ 1,105,711 $ - $ - $ 1,105,711 $ 1,105,711 $ $ - 43 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTION'S AND INVESTMENTS- Continued C. Types of Investments - continued Fire and Police Pension Investment Type Money Market / Liquid Assets Mutual Funds U.S. Treasuries Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Mortgage Corp Fannie Mac Ginnie Mac Common Stock Total Fire and Police Investment JP Morgan Trust Money Market Smith Barney Money Market JP Morgan Money Market Schwab Money Market MB Bank Money Market IMET Money Market Convenience Investment Maturities (In Y-ars) Fair Value Less Than 1 Year I - 10 More Years Equities $ 7,381,292 $ 29,407,699 25,333,833 23,300 2,387,735 8,609,618 13,005,240 5,720,185 11,582,476 $ 103,451,378 $ $ 425,641 2,137,311 1,900,859 1,481,766 1,308,591 127,124 $ 7,381,292 7,381,292 $ - $ - 1,512,798 27,894,901 3,472,911 21,860,922 - 23,300 - - 1,817,282 570,453 - 248,689 8,360,929 - - 13,005,240 - - 5,720,185 - - - 11,582,476 12,943,474 $ 51,030,527 $ 39,477,377 bvteresl Rate Risk. The City's investment policy does not limit investment maturities as a nreans of managing its exposure to fair value losses arising from increasing interest rates. The objective is to maintain a core portfolio with maturities primarily in the three month to three years range. C.'rcdit Risk. State law limits investments in commercial paper, corporate bonds, and mutual bonds funds to the top two ratings issued by nationally recognized statistical rating organizations. The City's investment policy does not impose further limits on investment choices. As of June 30, 2007, the Illinois Funds and Money Markets were rated AAAm by Standard & Poor's. The Illinois Metropolitan investment 1 - 3 Year Fund (IME'F) exclusively invests in AAA Standard & Poor's securities, such as treasury and agency obligations. IMET's convenience fund collateralizes all of its deposits 110%. The City's investment in Federal Home Loan Mortgage, Fannie Mae, and Federal home Loan Bank bonds were rated AAA by Standard & Poor's and Aaa by Moody's Investors Service. -44- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE, 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Types of Investments - continued Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. All of the City's investments were insured, registered, or filed by the counterparty's trust. Concentration of Credit Risk It is the policy of the City to diversify its investment portfolio. investments shall be diversified to eliminate the risk of loss resulting in overconcentration in a security, maturity, issuer, or class of securities. D. Deposits Custodial Credit Risk. For a deposit, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its deposit or collateral securities that are in the possession of an outside party. All of the City's deposits were insured, collateralized, or filed by the counterparly's trust. City Deposits consist of deposits in interest -bearing and noninterest-bearing checking accounts. At February 29, 2008, the carrying amount of the City's deposits, including cash on hand of $16,443, was $10,793,308. The financial institutions' balances totaled $11,624,960. Township At March 31, 2007, the carrying amount of the Township's deposits was $223,562, The financial institutions balances totaled $227,540. Fiduciary Deposits consist of deposits in interest -bearing and noninterest-bearing accounts. At February 29, 2008, the carrying amount of the Pension's deposits was $251,789 and $21,073 for Agency. The financial institutions' balances totaled $251,789 and $21,073, respectively. F. Reconciliation of Unrestricted and Restricted Cash and investments The total of unrestricted cash and investments and restricted cash and investments from the Statement of Net Assets and for the fiduciary funds is reconciled to the preceding deposit and investment disclosures (Notes 4C and Notes 4D) as follows: -45- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS —Continued E. Reconciliation of Unrestricted and Restricted Cash and Investments - Continued Unrestricted cash and equivalents $ 80,810,399 Unreshicted investments 11.528,957 Restricted cash and equivalents and investments 8,831,621 Total Cash and Investments — Primary Government 101,170,977 Fiduciary funds cash and equivalents 7,654,153 Fiduciary funds investments 96,070,091 Total Cash and Investments $ 204,895,221 Carrying amount of deposits -- from Note 4 D $ 11,289,732 Investments — tiom Note 4 C 193,605,489 Total $ 204,895,221 46 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year landing February 29,2008 NOTE 5. RECEIVABLES A. Summary of Receivables Receivables as ot'year- end for the government's individual major funds, nonmajor, inlemal service funds and fiduciary funds in the aggregate, including the applicable allowances for uncolleclible accounts, are as follmn s: Receivables Pmpeily lazes Accounts Nines Special assessnsnts Acc ued interest Other Gross receivables I.ess allowance for uncollecubles Net total re,eivables Geneial Capital Fund Inlorovenrells Nonnraloi Nonina3or Enterpnse and Olhet Water Sewer Fund Funds Total S 15,689,506 S - S - $ - S - S 31,728,551 $ 47,419,057 - - 1,717,492 2,438,960 - 3498 4,159,950 - - - - - 6233,835 6,233,835 - - - - - 1,087,014 1,087,014 17,829 18,393 26,051 10,541 10,397 475,369 558580 1,709,906 20,419 9,624 270,967 2,009,816 17,417,141 19,393 1,763,962 2449,SOI 19,021 39,791234 61,467,252 307,637 808,777 1,116,414 S 17,109,504 $ I9,393 $ 1,763,962 $ 2449,501 S 19021 S 38990,457 60,350,838 Net total receivables S 60,350,838 R. Notes Receivable — Special Revenue Funds 'rile ('try makes loans to City residents fill the rehabilitation of single-family and nuilu-family housutg. Initial funding for these loans was front Community Development Block Gjain (CD13(3) and Iloosing and Urban Development (I IUD) funds. Two types of loans ate made (1) title transfer loans which are due In full when the housing unit is %old, and (2) amortizing loans which ate due in monthly mstallmcntc over varying lengths of nine Repayments ofpruncipal and any rosiest canned on these tecevables, which are recorded in the respective Special 12cvenuc funds, are used to make additional ichabililafion loans. An allowance of $90,000 exists in the Special Revenue funds due to doubtful accounts. Loan activity for file current year is sunmlanied as follows Inleical Beginning Rates of Year Loans Made loan End of Repayments Year 0%-8% $ 5,543,7.39 $ 743,765 $ 240,319 $ 6,047,185 47 - CITY OF 1, VANSTON, ILLINOIS Notes to the Financial Statements I"or the Fiscal Year Ending February 29, 2008 NOTE 6. CAPITAL ASSLTS A. Capital Asset Activity Capital asset activity for the year ended Debi nary 29, 2008, was as follows. Bel -inning of Year Additions Deletions End of Year Governmental activities: Capital assets, not being depteaated Land $ 6,556,620 $ - $ - $ 6,556,620 12ight of way 18,695,896 - - 18,695,896 Property held for resale - 410,000 - 410,000 Construction in progress 1.586, 104 3207,779 647,757 4,146,126 'Total capital as,sets, not being depmciated 26,838,620 3,617,779 647,757 29.808,642 Capital assets, being depieciated Buddmgs and improvements 78,794,057 1,4577860 - W251,917 Office cquipmenl and fmnnure 10,079,103 - - 10,072103 Machmeiy and equipment 21,219,541 312,244 216,779 21,315,006 Infrash uctme 94,295,785 7,943,170 - 102,238,955 Library collections 9,288,269 995,012 174,603 10,108,678 Capitalized leases 664,069 65,575 - 729,644 Total capital assets being depmeciated 214,340.824 10,773,861 391,382 224,723303 Less accumulated depreciation for Buildings and improvements 25,230,810 1,819,110 - 27,049,920 Ol7ice egmpinent and furniture 6383,523 1,338,731 - 7,722,254 Maclormy and equipnxat 13,852,806 1,532,409 209,314 15,175901 hmfrasf ucturc 46,288,953 2,940,720 - 49,229,673 Library collections 7,632,558 463961 174,603 7,921,916 Capnaloed leases 664,069 6,559 - 670,627 "Total accumulated depreciation 100,052 719 9,101,489 383,917 107,770291 Total capital act assets being depiecmted, net 114,288,105 2,672,372 7,465 116,953,012 Govemmcnlal activities capital assets, nct $ 141,126,725 $ 6,290,151 $ 655,222 $ 146,761,654 48- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the fiscal Year Ending February 29, 2008 NOTE 6. CAPITAL ASSEA'S - Continued A. Capital Asset Activity -Continued Beginning of Year Additions Deletions End of Year Business -type activities: Capital assets, not being depreciated: Land $ 3,297,937 $ - $ - $ 3,297,937 Construction in prugiess 6,241,742 14,184,995 1,669,204 18,757,533 Artwork - 251,624 - 251,624 foaal capital assets, not being depreciated 9,539,679 14,436,619 1,669,204 22,307,094 Capital assets, being' depreciated. Land improvements 3,386,672 176,721 - 3,563,393 Building's and ❑ilmovements 72.355,641 - - 72,355,641 Leasehold nnprovemcnts 302,752 - - 302,752 Flan( 31,982,840 100,959 - 32,083,799 Transmission and distribution system 30,316,711 194,470 - 30,511,181 Sewer system and underground Imes 218,169,619 513392 - 218,683,011 Equipment 1,897,536 901,379 2,775 2,850,140 Parking meters 707,088 - - 707,098 'total capital assets being deprcciated 359,119,459 1,946,921 2,775 361,063,605 Less accumulated depreciation for Land improvements 781,499 84,636 - 806,135 Buildings and unprovcmcnts 6,359,791 1,740.024 - 8,099,805 Leasehold unpiovemmraK 280,091 8,979 - 289,070 Plant 10,005,170 726.731 - 10,731,901 Transmission and disnibution system 4,901,491 654.929 - 5,556,420 Sewer system and underground lines 24,651 962 2,921,640 - 27,573,602 Equipment 1,572,971 223.370 2,775 1,793,566 Parking mctas 346,125 43,921 - 390,046 Total accumulated depreciation 48,899,090 6,404.230 2,775 55.300,545 Total capital net assets being depicconed, net 310,220.369 (4,457.309) - 305,763,060 Business -type activities capital assets, net $ 3 )9,760,048 $ 9,979,310 $ 1,669,204 $ 328,070,154 49- CITV OF EVANSPON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 6. CAPITAL ASSETS - Continued A. Capital Asset Activity - Continued llepiemation expense was charged to functions/programms of the primary government as follows: Governmental activities General management and support $ 1,329,477 Public safely 547,386 Public works 4,201,097 Recreation and cultural opportunities 2,023,529 'folal depreciation expense— governmental activoic $ 8,101,489 13usmess — type activities Water $ 1,405,617 Sewer 3,086,647 Sherman Garage 1,023,172 Maple Avenue Garage 702,971 Motor Vehicle Parking 185,823 Total depieciation expense - business --type activities $ 6,404,230 It. Construction Commitments The value of construction contracts signed, wheic the work has not yet been performed at February 29, 2008, is as follows. Capital Implovemenl Fund Water Food Sewer Fund "fetal Construction Commitments 2,958,241 1,495,326 4,770,547 9,224,114 50 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year 15ndm; Pebluary 29, 2008 NOTE 7. INTFRRINDS The oulslandumg balances between funds result mainly from the time lag between the dates that (1) mlerfund goods and services ate provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds aw made. A. Interfund Accounts Al Febi nary 29, 2008 mlerfund receivables and payables consist of the following Funds Governmental Ponds General Fund Emergency Telephone System I-'cononmic Development Meet Service loam ance Community Development Block Grant Debt Service Fund Central Business Tax Increment District Capital Improvcnmenls Maple Avenue Garage Sheiman Carage Motor Vehicle Parking System Water Sewer Neighborhood I lousing Fund Library Endowment Fund Special Assessment CP Fund Firefighters Pennon Police Pension Total General Fund Capital I mpi ovenments Washington National Capital projects General 'Iblal Capital Improvements Nonmajor Governmental Funds Motor Fuel Tax Community Development Loan Economic Development General Emergency feeephone System General Due Nola Other Funds Due to Other Ponds $ 11,635 S - 4,801 - 41,048 - 1,066 - 5,642 - 33,120 190 992 183,841 154,396 - 20,516 - 148,078 - 17,200 - - 40,000 - 33,600 - 477 - 49,241 - 63,162 623,615 186,480 196,709 - - 1,992 196,799 1992 488 4,891 11,635 51- CITY OF FYANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 7. INTERRINDS - Continued A. Interfnnd Accounts - Continued Due room Due to Ponds Other Funds Other Ponds Nonmalor Governmental Funds - Continued I IOMI? Affordable Housing $ - $ 19,940 Community Development Block Grant - 8,991 - 29,921 Conununuy Development Block Giant General - 5,642 I IOM1, 8,981 - Community Development loan - 2,997 Washington National 'I'IF 15,565 - West Evanston fix Increment Distract 9,995 - Total Community Development Block - - Grant 34541 8,639 Community Development Loan Community Development Block Grant 2,997 - Molor Pucl 'Pax - 488 Total Community Development Loan 2,997 488 Neighborhood housing Fund General 40,000 - Libiary Endowment Fund General 33,600 - AfToidable Housing Fund Home 19,940 - Spemal Service District No 4 Special Service Disuict No 5 - 20,737 Employer Pension Conti ibution Piiefightcrs Pension - 1,516,489 Police Pension - 2,092,543 Total Employer Pension Contribution - 3,609,032 Town General Assistance - 6,074 General Assistance 'I own 6,074 - Special Service District No. 5 Special Service Disbicl No. 4 20,737 - West Evanston 'Tax Increment District - Communny Development Block Gram - 9,995 Washington National Tax Increment Dishict Sherman Plaza Garac 3,322,417 727,072 Community Development Block Grant - 15,565 Total Washington National 'I IF 3,322 417 742 637 Debt Service Fund Sewer Fund 1,01 9,989 - General Fund - 33,120 Total Debt Service 1,019,989 33,120 S2 - CITY OF EVANS'FON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 7. INTERFUNDS - Continued A. Interfund Accounts- Continued Due From Due to funds Other Funds Other Funds Nonmajor Governmental funds - Continued Central 13usinesS'rar Ineicmcnl District General $ - $ 190 Waslungton National Capital Projects Capital hoprovemcnts - 196,799 Special Assessment General 477 - Total Nonmalor Governmental Funds 4,501,260 4,673,158 Total Governmental Funds 5,321,674 4,861,630 lauetpnse Funds Water General - 148,078 Sewer General - 17,200 Debt Service Fund - 1,019,989 Total Scwm - 1,037,189 Sherman Garage Washington National TIP - 2.595,345 General - 154,396 'Folal Sherman Garage - 2,749,741 Nonmalor Enterprise Funds Maple Avenue Gauge General - 183,841 53 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Fndmg February 29. 2008 NOTE 7. INTERFUNDS - Continued A. Interfund Accounts - Continued Funds Nonmalor Enterprise Funds - Continued Motor Vehicle Parking System General Total Nonmalor E''nterprise Fonds Total Enterprise Funds Internal Service Funds Flect Services General Insurance Gcnctal Dotal Internal Service Funds Twsl and Agency Funds Filcrighters Pension General Pmployer Pension Contribution 'Total Firefighters Pension Police Pension General 19mployer Pension Contribution 'Dotal Police Pension Special Assesmreot Agency Police Pension Total 'frost and Agency Funds 'Pots] Primary Government Due from Other Funds S 49,241 516,489 565.730 63,162 2,092,543 2,155,705 3,721,435 9,043,109 $ Due to Other 1 unds 20,516 204.357 4.13L? 365 41,048 1,066 42,114 9,043,109 54 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 7. 1N1-IiRFON'DS - Continued B. Interfnnd Transfers Transfers are used to I) move revenues from the fund with collection authorization to the debt senate fund as debt service principal and interest payments become due, 2) move restricted amounts from borrowings to the debt service fund to establish mandatory reserve accounts, 3) move iestricted general fund revenues to finance various piogranu that the government mutt account form other funds in accordance with budgetary authorization, including amounts provided as subsidies or matching funds for various giant programs At February 29, 2008 transfers i❑ / out consist of the following: Funds Governmental Funds General Fund Affoi dab]c Ifousmg Fund Central Business'I az increment District Washington Nat] 'tax Increment District I toward l Iarney'Pax Increment District Southwest Tax Increment District Capital hnpiovcment Fund Special Assessment General Obligation Debt Service Fund Water Fund I loward Ridge 'Fax Increment District Motor Fuel 'tax Fund Motor Vehicle Parking System Maple Avenue Garage Fund 'total General Fund Capital Improvements Water General Total Capital Improvement Nonmajor Governmental Funds Fc000nne Development Maple Avenue Garage Mayor's Special Rousting Affordable I lousing Fund Affordable I lousunu Fund Gcncual Mayor's Special Ileasing Conmuuuty, Development Block Grant Washington Nall. Tax Increment Disuuet West livanston Community Development Loan Community Development Loan Community Development Block Grant transfers 31 ansfers In Out $ 31,800 $ 325,000 144,800 135,000 23,000 31,800 2,693,600 114,793 772,500 517,200 43,000 1,825,000 127,400 4,832,493 1,952,400 2,000,000 1.825,000 - 1,825.000 2,000,000 - 650,000 1,558,431 31,800 558,431 - 1,558,431 31,800 15,565 9,995 62,045 87,605 62,045 SS- CITY OF EVANS'I.ON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 7. INTFRFUNDS - Continued B. Interfund'Fransfers -Cautioned Funds Nonnol or Governmental Funds - Continued Town General Assistance General Assiatunce Town General Obligation Debt Service Fund General Special Assessment Total General Oblination Debt Central Business fax Increment District General Sherman Garage Maple Avenue Garage Total Central Business Fax Increment District Southwest fax Inciemcnt District General I loward Ilarlrey'fax Increment District General I lowaul Ridge Tax Increment District General Washington National Fax Increment District General Community Development Block Grant Sherman Garage Total Washington National 'Pax Increment Disulol West Evanston Tax Increment District Conmmmity Development Block Giant Special Assessment General General Obligation Debt Total Special Assessment Motor Fuel Tax General 'Pohl Norimajor Governmental Funds 'I "oral Governmental Funds Tramfer In Transfer Out $ - $ 125,000 125,000 - 127,400 - 419,215 - 546,615 - - 325,000 - 1,872.829 - 4,600,000 - 6,797,829 - 23,000 135,000 114,793 144,800 15,565 500,000 660,365 9,995 - 31,800 - 419,215 - 451,015 - 772,500 2,317,651 11,391,773 9,975A,I 15,344,173 56 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements Fou the fiscal Yew Ending February 29, 2008 NOTE, 7. INTERFl INDS - Continued It. Intcrfund Transfers - Continued Transfer 'I ranslbr Funds In Out laticrprise Funds Water General $ - $ 2,693,600 Capital Improvement 2,000,000 - Insurance - 2,000,000 lbtal Water 2,000,000 4,693,600 Sherman Garage Washington Nat]. Fax Increment District 500,000 - Central Business Tax Increment District 1,872,829 - 2,372,829 - Nonmajor Enterprise Funds Maple AVCnUe Garage Central Business Fax Increment District 4,600,000 - Economic Development 650,000 - General Fund - 43,000 "Total Maple Avenue Garage 5,250,000 43,000 Motor Vehicle Parking S):stem General Fund - 517,200 Polal Nonma3or I;nlcrpusc Funds 5,250,000 560,200 Total Enterprise Funds 9,622.829 5,253,800 Inle nal Set vice Funds Insurance Water 2,000,000 - Total Inlemal Service Funds 2,000,000 - 'total Primary Government $ 20J97.973 $ 20,597,973 C. Capital Contribution Capital conuibutions were made from governmental activities to the Sherman garage fund m the ammunt of $251,624 and Maple gat a_e fund m the amount of $495,286 57- CITY OF EVANSTON, ILI INOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 8. Operating Leases The City of Evanston has various operating leases covering the rental of several digital office copiers from the Distinctive Business Products, GB Capital and Great America Leasing. The copiers are located in the Evanston Civic Center, library, Recreation Department, Water Department and the Evanston Police and Fire Station. The following are the oustanding lease agreements as of February 29, 2008: Number Term Monthly Leasing Co. Exphation of Copiers months Payment Location Distinctive Business Products 02/17/09 9 60 $ 1,789 Library GE Capital 03/02/09 3 60 1,930 Civic Center (1); Police Dept. (2) GE Capital 03/02/09 2 60 1,759 Civic Center GE Capital 04/18/09 1 60 247 Police Dept. GE Capital 08/19/09 1 60 302 Chandler -Newberger GL' Capital 10/01/09 5 48 1,243 Police Dept. Great America Leasing 04/25/08 1 60 490 Civic Center Great America Leasing 07/25/08 1 60 190 Civic Center Great America Leasing 04/25/10 6 60 2,541 Civic Center Minimum annual lease payments are as follows: Fiscal year ending 2008 $ 115,180 Fiscal year ending 2009 33,649 Fiscal year ending 2010 2,541 $ 151,370 -58- CITY OF EVANSPON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE, 9. LONG-TERAI DEIST A. Changes in Long -Term Debt G.O. Debt Govern ental activities Series 1997 Series 1998 Series 1999 Series 2000C Sencs 20001) Series 2002C Suits 2003 Series 200313 Series 2004 Series 2004B Series 2005 Series 2006 Scncs 200613 Series 2007 'Total Governmental Acawty G O Debt G O Spwal Service District (t5 Scuts 2002C Penal barest Matra ny Rate Dale 500ob-550% I'_/1/'_017 4 MA 875% 12/l/2018 425%-500%, 12/I/2019 Vni mblc Rate 12/I/2021 Vat table Rate 12/l2021 500%-580 % 1/I/2022 200%-500% I/l/2010 200%-525% I/I/2023 200%-500°'o 12/1/2023 200%-525% 12/I/2017 325%-500% 12/1/2025 3 85%-5 00 % 12/l2026 400%-425% 12/12023 4.00%-500% 12/l/2016 Due Within 1/1/2007 Ixsiicd Refundnres Pavmenle 2/29/2008 One Year II 970,000 - 11,970,000 - - 930,000 - - 450,000 480,000 480000 8925,000 - 3,585,000 1,295,000 4,045 000 1,345 000 6,900,000 - - 3,500,000 3,400,000 3,400,000 4,100000 - - 200.000 3,900,000 200,000 5450,000 - - 715,000 4,735,000 705,000 3,475,000 - - 2070,000 1,405000 825,000 3,640,000 - - 80,000 3,56000 85,000 13,080,000 - - 140,000 12,940,000 150,000 11,585,000 - - 1370,000 10215,000 1,340,000 16,145,000 - - 15,000 16,130000 105,000 10,290,000 - - 120,000 10,170,000 120,000 14,430000 - - - 14430,000 - - 30.3,85.000 - 575.000 29.810000 1 035 000 110,920,000 30,385,000 15,555,000 10,530,000 115220,000 9,790000 5 00%-5 80% 1 /1 /2016 3 070 000 295,000 2,785,000 295,000 Bonds ryennum liability _4527,694 713368- 37y6,=1 _ 4861,441 Pension c,rarbubans 13620300 4,922,313 18442618 Compensated absence payable- City 10,060.433 5 875,174 5472,082 10,463 525 4,757 150 Clsims payable 5696 200 1326523 39 271 6,628,452 3,349,952 OPPI31"al" ny _ _ 302,471 - 302,471 - I otal Govenu»e tal activity Long-tert liabilities 147,994,627 43,424,854 15,555M0 17,060,974 158,703 507 19,192,102 59 - CITY OF 13VANSTON, ILLIN0IS Notes to the Financial Statements For the Fiscal Year Eliding February 29. 2008 NO7T 9. LONG-TEIRM DFsRT-Continued A. Changes in Long -Term Debt - Continued G.O. Debt Business -type Aetiviliea Serves 1999 Puking System Series 1909 Sewer(2007) Said 1999 Scwci Sates 2000A Maple Avenue Gauge Series 2002A Sherinaa Gaiapc Series 200213 Shcmlan Garage Series 20031'arkmg System Series 2005 Sherman Garage Foal Business Activity G 0 Debl Water lleveime BiOul, Series 1999 Series 2002 'Dotal Water Fuld revenue bonds IFPA Debt Final Inlerest Maturity 13alano, Bale Dale ,/1/07 4 25 %-5 OVI. 12/I/2019 1,390,000 400%-500% 12/l/2016 8,935000 425°h-500% 12/l/2019 9,685000 Variable Rate 12/I/2021 7,900,000 Variable Rate 12/1/2018 29,500,000 Variable Rate 12/l2008 5,500,000 200%-500% 1/I/2010 1740000 325%-500% 11/1/2025 12.275.000 76,825,000 k,eed Rcfundmet 4125-4375% I/l2014 1,975,000 200-375°'n I/I/2012 1,365,000 3,240,000 2 535-3 59% Various 99: 190,921 10,794 924 Unamorbred bond expenses and discount (12,878) __ Compensated absences payable- City 585,606 95,361 0IT13 Liability 28,172 Telal Business activity Long-lcnn liabilities 180,128.6,19 10,918.357 60 - Balance Due Within Pa a� rents 3/1/09 One Yea, 90,000 1,300,000 95,000 780,000 8,055000 840,000 1,375,000 8,31103100 1,465,000 3,000,000 4,000000 4,000,000 1,800,000 27,700,000 1,500,000 1000,000 4,500,000 1000,000 540,000 1,200,000 580,000 810.000 11,465.000 840,000 10,295 000 66,530,000 11.320,000 235,000 1,640,000 145,000 250000 1, 115,000 265,000 .185000 2,755,000 510,000 874,858 103,410,887 7.534.224 _465 (2,413) (4,060) 41,615 639,352 6'9,352 8,172 17,686,008 173,360,998 19,999, 516 CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 9- LONG-TERM DEBT - Continued A. Changes in Long-term Debt- Continued Business type activities - Water Revenue Bonds Business type activities revenue bonds are payable from revenues derived from Water service fees. The City has pledged future revenues, net of operating expenses, to repay principal totaling $5,855,000 in revenue bonds issued in 1999 and 2002. Proceeds from the bonds provided financing for Water CIP projects. The bonds are payable solely from revenues and are payable through 2014. Annual payment and interest on the bonds are expected to require $620,913 of net revenues for Fiscal Year 2008-09. The total principal and interest remaining to be paid on the bonds is $3,117,456. Principal and interest paid for the current year and total customer net revenues were $613,712 and $6,100,566 respectively. Revenue debt payable consists of the following: Date of Final Interest Original Issue Matmity Rates Indebtedness Balance 1/25/1999 1/1/2014 Various 3,500,000 1,640,000 10/1/2002 1/1/2012 Various 2,355,000 1,115,000 Total Business type Activities- Water Revenue Bonds 21755,000 Business type activities - IEPA Loans Business type activities IFPA loans are payable from revenues derived from Sewer service fees. The City has pledged future revenues, net of operating expenses, to repay principal totaling $154,541,284 in ]EPA loans issued in 1993 through 2007. Proceeds final the loans provided financing for the bong Term Sewer Improvement Program. 'file IEPA loans are payable solely front revenues and are payable through 2028. Annual payment and interest on the bonds are expected to require $10,305,571 of net revenues for the Fiscal year 2008-09. The total principal and interest remaining to be paid on the loans is $123,894,370. Principal and interest paid for the current year and total customer net revenues were $9,512,411 and $12,057,129 respectively. ]EPA loans payable consist of the following: Date of Final interest Original Issue Maturity Rates Indebtedness Various Various Various 154,541,284 Total Business type Activities- ]EPA Loan Debt Balance 103,410,887 103,410,887 61- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 9. LONG-TERM DEBT - Continued B. General Obligation Bonds Payable The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business -type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City. These bonds generally are issued as 20-year serial bonds with equal amounts of principal maturing each year. In November 2001, the City entered into an interest rate swap agreement with Bank of America relating to the City's $19,000,000 General Obligation (G.O.) Variable Rate Demand Bonds, Series 2000A and the $10,400,000 Variable Rate Demand Bonds, Series 2000C with a fixed rate of 3.125% effective 12/1/01 through 11/30/05. In November 2002, the City entered into a rate cap agreement with JP Morgan Chase Bank relating to the City's $35,000,000 G.O. Variable Rate Demand Bonds, Series 2002 A and B, with a cap rate of4.75% effective 12/1/02 through 11/30/2005. In March, 2003, the City issued $16,430,000 in General Obligation bonds with an average interest rate of 3.27% to advance refund $15,895,000 of outstanding 1993 Series bonds with an average interest rate of 4.04%. The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $538,201. This difference, reported in the accompanying financial statements as a bond premium liability, is being charged to operations through the year 2011 using the straight-line method. The proceeds from the new bond issue were used to establish an escrow account and those monies were used to fully payoff the 1993 bonds on June 1, 2003. The City completed the advance refunding to reduce its total debt service payments over the next seven years by $1,149,266 and to obtain an economic gain (difference between the present values of the old and new debt service payments) of $1,065,550. In May, 2003, the City issued Series 200311 $11,485,000 in Gencral Obligation bonds at a net interest cost of 4.4900825%. The proceeds are being used to partially finance the City's Long Range Capital Improvement Program. In May 13, 2004, the City issued Series 2004 $13,355,000 in General Obligation bonds at a net interest cost of 4.6291740%. The proceeds are being used to partially finance the City's Long Range Capital Improvement Program and Special Assessment Alley program. In July 27, 2004, the City issued Series 2004B $11,730,000 in General Obligation bonds at a net interest cost of 3.739542%. The proceeds are being used to partially refund $11,085,000 of the 1997 bonds. In July 28, 2005, the City issued Series 2005 $29,270,000 in General Obligation bonds at a net interest cost of 3.893986%. The proceeds are being used to partially refund $6,350,000 of the 1998 bonds, pay a portion of the costs of Capital Improvement Program, finish constructing the Sherman Garage, and pay loot additional Special Assessment Alley program. -62- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 9. LONG-TERM DEBT - Continued B. General Obligation Bonds Payable- Continued In July 19, 2006, the City issued Series 2006 $10,290,000 in General Obligation bonds at a net interest cost of 4.793401%. The proceeds are being used to partially finance the City's Long Range Capital Improvement Program and Special Assessment Alley program In December 27, 2006, the City issued Series 2006B $14,430,000 in General Obligation bonds at a net interest cost of 4.206030%. The proceeds are being used to partially refund $6,480,000 of the 2002C bonds and $7,270,000 of the 2003B bonds. This will result in net cash savings on $769,505 which translates to a net present value savings of $665,226. In May 24, 2007 the City issued Series 2007 $30,385,000 in General Obligation bonds at a net interest cost of 4.191092%. The proceeds are being used to current refund $11,970,000 of the City's Series 1997, advance refund $3,585,000 of the City's outstanding Series 1999 Bonds and provide $14,830,000 for capital improvement needs. This will result in net cash savings of $1,073,395 which translates to a net present value savings of $858,467. Annual debt service requirements to maturity for general obligation bonds areas follows: Year > ndingGovernmental Activities February 28 Principal Interest 2009 9,790,000 5,416,167 2010 6,515,000 5,037,731 2011 6,635,000 4,794,683 2012 7,130,000 4,501,828 2013 7,610,000 4,189,545 2014-2018 37,380,000 14,833,553 2019-2023 27,510,000 6,817,824 2024-2028 12,650,000 1,571,262 Total $ 115,220,000 47,162,593 Business -type Activities Principal Interest 11,320,000 2,933,734 7,540,000 2,468,528 6,735,000 2,110,474 7,325,000 1,797,960 6,565,000 1,455,774 23,190,000 3,724,368 3,855,000 146,900 63- 66,530,000 14,637,738 CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 9. LONG-TERM DEBT - Continued C. Special Service District Bonds Payable The City also issued debt in the Special Service District No. 5 fund to provide funds for the principal and interest payments on unlimited ad valorem tax bonds issued for this special taxing district. Annual debt service requirements to maturity for special assessment bonds are as follows: Year Ending February 28 2009 2010 2011 2012 2013 2014-2018 Total D. Revenue Bonds Payable Governmental Activities principal Interest 295,000 143,063 305,000 128,313 325,000 113,063 335,000 96,813 345,000 80,063 1,180,000 124,950 $ 2,785,000 686,265 The City also issued revenue bonds where the City pledges income derived from the acquired or constructed assets to pay debt service. The bonds were issued to finance construction projects related to the water treatment plant. Revenue bond debt service requirements to maturity are as follows: Year Ending Business -type Activities February 28 Principal Interest 2009 510,000 110,913 2010 525,000 91,556 2011 550,000 71,269 2012 575,000 49,344 2013 290,000 26,032 2014-2018 305,000 13,344 Total 2,755,000 362,458 64 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 9. LONG-TERM DEBT - Continued E. Notes Payable - Sewer IEPA Loans During the fiscal year ended February 29, 2008, the City Currently has 26 outstanding loans from the IEPA. The City will repay the loans solely from revenues derived from the sewer system; the loans do not constitute a full faith and credit obligation of the City. They will be repaid with equal installments consisting of principal plus simple interest, on unpaid principal balances, over a period of 20 years. Initial principal balances will consist of disbursements and interest accrued during construction. Repayments begin not later than six months after completion of construction. Notes payable — Sewer IEPA debt service requirements to maturity are as follows: Year Ending Business -type Activities February 28 Principal Interest 2009 7,534,224 2,771,347 2010 7,791,791 2,575,069 2011 8,019,014 2,347,755 2012 8,252,971 2,113,703 2013 8,371,194 1,872,709 2014-2018 35,312,564 6,120,640 2019-2023 20,346,086 2,248,441 2024-2028 7,722,421 433,060 2029-2033 60,622 758 Total 103,410,887 20,483,482 F. Prior Years' General Obligation Bond Defeasances In 1999, the City defeased a portion of Series 1994, Series 1995, and Series 1996 Corporate Purpose bonds, by placing a portion of the proceeds of Series 1999 Bonds in an irrevocable trust to provide for the advance refunding of the callable portion of the bonds. In 2004, the City defeased a portion of Series 1997 Corporate Purpose bonds, by placing a portion of the proceeds of Series 2004B in an irrevocable Escrow Account. In 2005, the City defeased a portion of Series 1998 Corporate Purpose bonds, by placing a portion of the proceeds of Series 2005 in an it Escrow Account. In 2006, the City defeased a portion of Series 2002C and 2003B Corporate Purpose bonds, by placing a portion of the proceeds of Series 2006B in an irrevocable Escrow Account. In 2007, the City defeased Series 1999 and a portion of Series 1997 by placing a portion of the proceeds of Series 2007 in an irrevocable Escrow Account. 65 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year finding February 29, 2008 NOTE 9. LONG-TERM DEBT - Continued F. Prior Years' General Obligation Bond Defeasances - Continued The trust account assets and the liabilities for the defeased bonds are not included in the City's financial statements. At February 29, 2008, the following remaining outstanding balances are considered defeased: Original Outstanding G.O. Series Amount Defeased Defeased Amounts 1996 9,765,000 9,765,000 1998 6,350,000 6,350,000 1999 (partial) 3,585,000 3,585,000 2002C 6,480,000 6,480,000 2003B 7,270,000 7,270,000 The outstanding balances of Series 1998, 1999, 2002C and 200313, not defeased at February 29, 2008, are recorded as a liability in the City's financial statements. Those balances are as follows: Series 1998 $ 480,000 1999 4,045,000 2002C 4,735,000 2003B 3,560,000 G. Prior Years' Special Service District #5 Bond Defeasances In 2003, the City defeased a portion of Special Service District 95 Series 1995 and 1996 bonds by placing a portion of the proceeds of Series 2002C in an irrevocable escrow account. Special Service Original Amount Outstanding District #5 Defeased Defeased Amounts 1995 1,990,000 1,990,000 1996 1,620,000 1,620,000 -66- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 9. LONG-TERM DEBT - Continued H. Post Employment Benefits other than Pensions (Defined Benefit Plan) The City of Evanston's group health insurance plan provides coverage to active employees and retirees (or other qualified terminated employees) at blended premium rates. This result in an other post employment benefit (OPEB) for the retirees, commonly referred to as an implicit rate subsidy. The group health insurance plan does not issue a publicly available financial report. Contribution requirements are established through Illinois State laws. The City of Evanston implicitly contributes the difference between retiree's contributions and unblended rates. Retirees pay 100% of the blended premiums to cover themselves and their covered dependents ranging from $327 for single coverage to $1,404 for family coverage. The city pays 100% of health care premiums for Police officers and Firefighters, their dependents and their surviving spouses and dependent children if they were injured or killed in the line of duty during an emergency, ranging from $327 for single coverage to $1,404 for family coverage. For fiscal year 2008, the City contributed $350,332 to the plan. The City of Evanston's annual other post employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially detennined in accordance with parameters of GASB Statement No.45. The ARC represents a level of funding that, if'paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City of Evanston's annual OPEB cost for the year, the amount actually contributed to the plan and changes in the City's net OPEB obligation to the retiree health plan. Annual required contribution $ 680,975 Interest on net OPEB obligation - Adjustment to annual required contribution Annual OPEB cost 680,975 Contributions made (350,332) Increase in net OPEB obligation 330,643 Net OPEB obligation - Beginning of Year Net OPEB obligation - End of Year $ 330,643 -67- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 9. LONG-TERM DEBT - Continued H. Post Employment Benefits other than Pensions (Defined Benefit Plan) - Continued The City of Evanston's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for 2008 were as follows. Percentage of Fiscal Year Annual OPEB Annual OPEB Net OPEB Ended Cost Cost Contributed Liability 2/29/2008 $680,975 51,45% $330,643 The funded status of the plan as of March 1 st, 2007, the most recent actuarial valuation date, was as follows: Actuarial accrued liability (AAL) $ 7,254,074 Actuarial value of plan assets - Unfunded Actuarial Accrued Liability (UAAL) 7,254,074 Funded ratio (actuarial value of plan assets/AAL) - Covered payroll (active plan members) $ 48,531,780 UAAL as a percentage of covered payroll 14 95% Actuarial valuations of an ongoing plan involve estimates for the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the health care trend. Amounts determined regarding the funded status of the plan and annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 9. LONG-TERM DEIST - Continued H. Post Employment Benefits other than Pensions (Defined Benefit Plan) - Continued Projections of benefits for financial reporting purposes are based on the substantive plan (the plan is understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of calculations. In the March 1, 2007 actuarial valuation, the entry age normal cost method was used. The actuarial assumptions include a 4.50 percent investment rate of return and an annual healthcare cost trend date of 9.50 percent initially, reduced by decrements to an ultimate rate of 4.50 percent after 10 years. Both rates include a 3 percent price inflation assumption. The actuarial value of retiree health plan assets was determined using techniques that spread the effects of short term volatility in the market value of investments over a three year period. Retiree health plan's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at March 1, 2007, was 30 years. 69 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 10. FUND EQUITY A. Restrictions of Net Assets - Water Fund The ordinances authorizing the issuance of the Water revenue bonds provided for the creation of separate reserve accounts designated as "Bond and Interest Account", "Bond Reserve Account", "Depreciation, Improvement, and Extension Account", and "Surplus Revenue Account". Descriptions of each follow: Bond and Interest Account - All amounts required to be set aside for the purpose of paying principal and interest of outstanding Water Revenue bonds shall be set aside monthly as directed. In addition, there shall be credited monthly an amount at least equal to the sum of one -fifth of the interest becoming due on the next interest payment date and one - tenth of the aggregate yearly amount of principal due on the next principal maturity date. Bond Reserve Account - The account shall accumulate $145,800 per year until all bonds have been paid or provision has been made for their payment. The funds shall be retained and used only for payment of Water Revenue bonds at any time when there are insufficient funds available in the Bond and Interest Account. Whenever the balance in the account is equal to the maximum principal and interest requirements on all outstanding bonds for any succeeding fiscal year, the surplus over and above may, in the discretion of the City Council, be transferred to any other account within the Water Fund of the City. Depreciation, Improvement, and Extension Account - The account shall accumulate $5,100 per month or a greater amount as may be designated by the City Council. The monies shall be used first to provide an adequate allowance for depreciation, and may be used to pay for any extraordinary maintenance, repairs, and necessary replacements for improvement or extension of the system. The funds may be used at any time to pay principal of, or interest upon, any outstanding bonds payable whenever there are no other funds available. If the money on deposit is greater than $400,000, the excess can be transferred to any other account within the Water Fund. All proceeds received from the disposition of any property shall be credited to this account. Surplus Revenue Account - All revenues remaining after all other credits in the Water Fund have been made shall be credited to this account and be used for: making up any deficiency necessary to credit prior accounts with the required amounts; paying principal of, or interest on, any junior lien bonds; transfer to any other account of the fund: and any lawful corporate purpose, at the discretion of the City Council, B. Restricted Net Assets - Fiduciary Funds Fiduciary Funds Firefighters' Pension Fund Restriction for employee pension benefits $ 45,343,765 Police Pension Fund Restriction for employee pension benefits 62,525,333 Total Fiduciary Funds 70 - $ 107,869,098 CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements Por the Fiscal Year Ending February 29, 2008 NOTE 10. FUND EQUITY - Continued C. Reservations of Fund Equity Reservations are used to segregate portions of fund equity which are either legally restricted for specific purposes are not "available spendable resources." The following reservations are reported: General Fund Reserved for encumbrances Reserved for Arts Council Reserved for private clm trees Reserved for parkway trees Reserved for Bullerlicld sculpture Reserved for scholarship contributions Reserved for public library acquisitions Reserved for recreation group activities Reserved for youth initiative Othcrrescrves Total General Fund Special Revenue Funds Reserved for I JUD approved Projects Reserved for notes receivable Total Special Revenue Funds Debt Service Funds Reserved for debt service Total Reserved Fund Equity - Governmental Funds PAZ $ 137,182 32,139 144,763 354,186 31,833 32,753 100,862 207,123 42,151 24,524 1,107,516 410,000 6,047,185 6,457,185 23,292.305 $ 30,847.006 CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 10. FUND EQUITY - Continued D. Unrestricted Fund Equity - Designated The City has designated certain amounts of unrestricted fund equity fier the following purposes: General Fund IMRF - Pension Compensated Absences Capital prgjects to be financed in a future period Total General Fund Special Revenue Fund: Specific Capital Projects Motor Fuel Tax Library Total Special Revenue Fund: Capital Projects Funds Specific capital project Capital improvement: Tax Increment Districts Special Assessment Total Capital Projects Fundy Unrestricted Fund Equity - Designated The Township has no designated unrestricted fund equity. 72 - $ 2,590,000 2,576,360 259,731 5,426,091 1,513,985 2,757,289 4,271,274 13 912,566 3,706,360 3,729,314 21,3487240 $ 31,045,605 CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 11. INDIVIDUAL FUND ACTIVITIES A. General Obligation Debt Service Fund The City usually adopts several resolutions abating portions of the property tax debt service levies. "1-he amount of property lases abated is derived from principal and interest payments by private assessments on street paving projects; additional sewer service fees related to the citywide sewer improvement project; tax increment revenues in the Central Business, Southwest, Washington National, and l Inward Ilarlrey Tax Increment Districts; revenues from the Motor Vehicle Parking System Fund associated with the Church Street Sclf-Park garage; and General Obligation Debt Service Fund interest income. B. Water Fund On January 28. 1997, the City executeda long-term water supply contract with the Village of'Skokie, Illinois, to replace an expiringeontract. The contract took effecton March 1, 1997 and continues in effect fora period ufhventy ),cars until February 28, 2017. "1-he contract is renewable at ten-year intervals thereafter. Under the terms of the contract, Evanston is to supply Skokie sufficient potable Lake Michigan water to satisfy the maximum 24-hour demand for Lake Michigan water of the Village of Skokie system. The City also provides potable lake Michigan water to the Northwest Water Commission (N W WC) under a long-term water supply contract. Sale of potable water under this contract began on February 28, 1985 and continues until February 28, 2030. Under the terms of the current contract, Evanston is to supply the N W WC sufficient potable lake Michigan water to satisfy the Commission's maximum 24-hour demands for Lake Michigan water for resale to the Conunission's customers. C. Special Service District No. 4 On August 13, 2007, the City Council adopted Ordinance No. 37-R-07 which extended the life of Special Service District No. 4 until December 31, 2019. Special Service District No. 4 comprises the central business district of the City. "I'he special district leas established for the purpose of providing funds for special maintenance and repair and for promotion and advertisement. The Ordinance states that the annual property lax levy for the District shall be as assessed and equalized the suns of $453,900. The annual property tax levy for 2007 was $453,900. The ordinance also authorized the City to enter into an agreement with F,VMARK, INC., an Illinois not -for -profit corporation to plan, implement, and manage the district. 73- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 12. RISK MANAGEMENT- CLAIMS AND JUDGMENTS The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; natural disasters; and injuries to the City's employees. The City maintains conunercial all-risk property insurance to cover damage to City facilities and contents and other losses including business interruption and loss of rents. The coverage is subject to a deductible of $25,000 for each loss and each location. The City also maintains crinnc and fidelity insurance coverage with a $10,000 deductible to a limit of $2,000,000. In addition, coverage is maintained for ambulance/paranmdic liability and dental malpractice. For workers' compensation, specific excess coverage in excess of $350,000 per occurrence is purchased from a commercial insurance company. For general liability claims, the City retains risk of loss. No cases have exceeded the amount of insurance coverage for the past three years. Worker compensation and general liability risks are accounted for in the Insurance Fund. The fund Was established on March 1, 1994 to administer general liability clainns and oorkers' compensation progranns on a cost -reimbursement basis. The fund accounts for the aforementioned liabilities of the City, but does not constitute a transfer of risk from the City. 'fhe City records estimated liabilities for workers compensation and for general claims. Claims liabilities are based on estimates of the ultimate cost of reported claims including future claim adjustment expenses. The changes in the balances of claims liabilities during the past two fiscal years are as follows: Workers' Gencral Compensation Liability Total February 28, 2006 $ 2,941,115 $ 1,592,999 $ 4,534,114 New clainns and/or estimate revisions 362.161 1,489,000 1,851.161 Claims payments (502,075) (197AO) (689,075) February 28, 2007 2,801,201 2,894,999 5,696,200 New clainnsand/orestimate ievisions 1,075.507 251,016 1,326,523 Claims payments (283,255) (111,016) (394,271) February 29, 2008 $ 3.593,453 $ 3,034,999 $ 6,628A52 74 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year landing February 29, 2008 NOTE 13. SUBSEQUENT EVENTS The City issued Series 2008, $43,950,000 general obligation bonds in May 2008. The distribution of proceeds are as lbllows: $3,900,000 to current refund 20001) Bonds, $27,700.000 to current refund 2002A Bonds and $2,350,000 to partially finance the City'.s long-range capital improvement program. NOTE 14. CONTINGENCIES There are various claims and legal actions pending against the City for which provision has been made in the financial statements. At the present time, the City believes that the reserves established are sufficient so that the expected liability for these claims and legal actions will not materially exceed the amounts recorded in the financial statements. Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability ofthe applicable funds. The amount, if any, ofthe expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. NOTE 15. JOINT VENTURES A. Northwestern University On January 28, 1985, the City adopted a Central Business 'Fax Increment City called the Downtown II Redevelopment Area, which consisted of26 acres of contiguous land located in the northwestern portion ofthe central business District of the City. The City comprised eight blocks of land owned by private parties, Northwestern University, and the City at the date of adoption. 'fhe redevelopment plan was formulated in accordance with the Fax Increment City laws of the State of Illinois. In 1986, the City Council adopted a Statement of Understanding between the City and Northwestern University (Northwestern) concerning the development of approximately 22 acres ofthe Downtown B City as ajoint venture. 13), this agreement, the City and Northwestern agreed to develop a Research Park (Park) in the 22-acre area contiguous to and adjoining a new Basic Industry Research Lab (GIRL) operated by Northwestern. 75 - CITY OF EVANSI'ON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE15. JOINTVENTURES— Continued A. Northwestern University - Continued The City and Northwestern famed a for -profit corporation known as TOPCORP to buy and hold land for park development. The City and Northwestern each acquired 50% of the stock and each was entitled to elect and replace three directors. At the same lime, Research Park, tile. (RPI) was incorporated as a wholly owned subsidiary of TOPCORP. The mission of RPI was to promote and market the park land to private developers. In 1996, TOPCORP and RPI were merged and the resultant entity renamed Northwestern University/Evanston Research Park, Inc. All of the existing management and loan agreements were assumed by the new corporation. As of December 31, 2003, the decision was made to dissolve the organization. '1'hc remaining assets of $27,500 are to be divided among the interested parties. ')'Ile City's Corporation Counsel filed the necessary court documents to dissolve the organization, and it was completed on June 2006. 'There was no activity bet.vecn December 31, 2002 and December 31, 2007, so there are no financial statements to report. B. Solid Waste Agency of Northern Cook County On March 28, 1988, the Evanston City Council authorized agreements providing for the C'ity's participation in the Solid Waste Agency of Northern Cook County (Agency) and in the interim financing of that Agency. The Agency was planned and developed by the Northwest Municipal Conference, of which the City is a member. The agency is empowered to plan, finance, construct, and operate a solid waste disposal system. 'file Agency is a municipal joint action agency created as of May 2, 1988 under the provisions of the Intergovernment Cooperation Act, 5 ILLCS 220/3.2. 'file Agency consists of twenty-three municipalities. 'file Agency is governed by a Board of Directors consisting of one official selected by each member community who serves a two-year terns. Each director has one vote. The Board of Direclosdelermines the general policies of the Agency. The l ixecutive Conn ittee of the Agency consists of seven persons elected by the Board of Directors. Each person is entitled to one vole. 'file Executive Committee may take action not specifically reserved to the Board of Directors by the Act, the Agency agreement, or the bylaws. 'file authority to designate nnanagenncnl, influence operations, and formulate budgets rests with the Board of Directors and Executive Conunillee. No one nnennbcr has the abiliq, to significantly influence operations; therelbre,lhe Agency is not a component unit of any other governmental reporting entity. 76 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 15. JOINT VENTURES —Continued B. Solid Waste Agency of Northern Cook County - Continued Under the 1992 project use agreement executed by the City with the Agency, the City's share of project costs, including debt service and disposal, is based on its share of deliveries to the Wheeling Transfer station for each year. The City does not control the Agency's fiscal management or operations nor is the City legally responsible for any more than its share of the Agency's debt or operating deficits, if any. Summary of Financial Position as of April 30, 2007: Current assets $ 6,267,738 Restricted assets 1,034,968 Property, plant, and equipment 13,490,546 Debt issuance costs. net 111,57" Total assets $ 20.904,825 Current liabilities $ 4,259,962 Long-term debt, net of unamortized discount 7,917,288 Invested in capital assets, net of related debt 4,473,258 Restricted for debt service, net of accrued interest 1,002,119 Umcstricicd net assets 3,252,198 Total liabilities and fund equity $ 20.904,825 Summary of Revenues and Expenses for the Year Ended April 30, 2007: Total revenues Total expenses Net (loss) $ 16,341,910 (16,358,896) $ (16,986) Complete financial statements for the agency can be obtained at 2700 Patriot Blvd., Glenview, IL 60026. 77 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE15. JOINTVENTURES— Continued C. Evanston Housing Corporation The City agreed to jointly participate with various lending institutions in a not-for-profithousing mortgage corporation by approval ofthe City Council on May 22, 1989. The purpose of the corporation is to lend mortgage funds to qualified, income eligible, first-time homebuyers in the City of Evanston. The Corporation is governed by a Board of Directors often people. four of whom are selected by the City. The Board has the authority to approve the annual budget and to arrange for the management of the affairs of the Corporation. The City has no governing authority to influence actions of the Corporation. The City is not liable for payment of any debts of the Corporation. The City of Evanston advanced funds to the Corporation under two secured promissory notes, one for $500,000 and the other for $214,287. 'file notes are payable on or beforeNovember30, 2009 and April 30, 2030, respectively. The notes bear no interest. however. the City is entitled to a certain net sales consideration upon the sale or exchange of the mortgaged property, as well as a prorated portion of the investment income earned on the funds not loaned to mortgagees. The financial institution~ funds are advanced under Non -Recourse Collateral ']rust Notes. The notes are payable on m before November 30, 2029. Interest accrues based on interest earned from the mortgage notes receivable and investments, less expenses. Interest is paid semiannually to the holders on a pro -raja basis based on the amount ofeach note held to the total outstanding notes. The audited financial statements of Evanston Housing Corporation for the year ended December 31, 2007 are summarized as follows: Statement of Financial Position as of December 31, 2007: Cash and cash equivalents Mortgage loans receivable 'total assets Payables and accrued expenses Notes payable Total liabilities Net Assets V131 1,536.518 1,604,702 3,141,220 77,220 3,064,000 3,141,220 CITY OF EVANSI'ON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE15. JOINTVENTURES— Continued C. Evanston Housing Corporation - Continued Statement of Activities for the Year Bnded December 3 L 2007: Total revenues 'total operating expenses Fxcessofrevenuesoverexpenses S 132,931 (132,931) 'fhe City provides the Corporation with office space and staff support on a cost reimbursement basis. Complete financial statements for the Corporation can be obtained in the City's Community Development Department from the Assistant Director, b lousing Rehabilitation and Properly Standards. NOTE 16. DEFERRED COMPENSATION PLAN The City of lvanston offers its elected officials and employcesa deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is administered by the ICMA Retirement Corporation. The plan, available to all City employees, permits them to defer a portion of their current salary to all future year's. The deferred compensation is not available to the participants until termination, retirement, death, or an unforeseeable emergency occurs. The assets of the plan are held in Trust (ICMA Retirement Corporation Deferred Compensation Plan and 'Dust), with the City serving as trustee, fin the exclusive benefit of the plan participants and their beneficiaries. The assets cannot be diverted to any other purpose. The City'.s beneficial ownership ofplan assets held in the ICMA Retirement Trust is held for the further exclusive benefit of the plan participants and their beneficiaries. 'file City and its agent have no liability for losses under the plan, but do have the duty of care that would be required of an ordinary prudent investor. Plan balance at February 29, 2008 79 - $ 34,562,899 CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 17. DEFINED BENEFIT PENSION PLANS fhe City maintains two separate single -employer retirement plans established by state statute for the City's police officers and firefighters. The City also participates in the Illinois Municipal Retirement Fund (IMRF), a statewide nmltiple-employer public employee retirement system which acts as investment and administrative agent. The IMRF plan covers substantially all of the City's employees other than police officers and firefighters. The City created a special revenue fund, the Employer Pension Contribution Fund, to accommodate the pension accounting requirements. This fund recognizes the appropriate tax revenues fbi the City on behalf of the Pension Trust Funds and contributes those amounts into the Pension "Dust Funds as the employer contribution. fhe Employer Pension Contribution Fund is a special revenue fund and uses the modified accrual basis of accounting. The tax revenues are recognized when measurable and available. The expenditures are recorded when the liability is incurred, which is when the revenue is recognized. Illinois Municipal Retirement Fund A. Plan Description The City and Township's defined benefit pension plan, IMRF, provides retirement, disability, annual cost of living adjustments, and death benefits to plan members and beneficiaries, IMRF is an agent multiple employer pension plan that acts as a common investment and administrative agent for local governments and school districts in Illinois. The Illinois Pension Code establishes the benefit provisions of the plan that can only be amended by the Illinois Gencral Assembly. IMRF issues a publicly available financial report that includes financial statements and required supplementary information. "that report may be obtained by writing to the Illinois Municipal Retirement Fund, 2211 York Road, Suite 500, Oak Brook, Illinois 60523, or by accessing their websitc at www. inu'f.org/pubs/pubs_homcpagchtm. Employees participating in IMRF are required to contribute 4.50% of their annual covered salary. The member rate is established by state statute. The City and Township are required to contribute at an actuarially determined rate. The City's rate for calendar year 2007 was 7.97% of payroll. The employer contribution requirements are established and may be amended by the IMRF 13oard 01"frnS1CCS. B. Funding Status and Progress The City's total payroll for the calendar year ended December 31, 2007 was $55,908,349. Of this amount. $34,496,585 in payroll earnings were reported to and covered by the IMRF system. "fhe Township's total payroll for the year ended December 31, 2006 was $344,707. Of this amount, $344,707 in payroll earnings were reported to and covered by the IMRF plan. 80 - CITY OF EVANSPON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 17. DEFINED BENEFIT PENSION PLANS - Continued Illinois Municipal Retirement Fund - Continued C. Annual Pension Cost For December 31, 2007, the City's annual pension cost of $2,749,378 was equal to the City's required and actual contributions. "Phc required contribution was determined as part of the December3l, 2004 actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) 7.50% investment rate of return (net of administrative expenses), (b) protected salary increases of 4% a year, attributable to inflation, (c) additional projected salary increases ranging from 0.4% to 11.6% per year, depending on age and service, attributable to seniority/merit. and (d) post -retirement benefit increases of 3% annually. The actuarial value of IMRP assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a five-year period. The assumptions used for the 2006 actuarial valuation were based on the 2002-2004 experience study. IMRF's unfunded actuarial accrued liability is being amortized as a level percentage ol'projected payroll on a closed basis. The remaining amortization period at December 31, 2007 was 25 years. Three -Year fiend Inlbrmalion for IMRP - City Actuarial Valuation Annual Pension Date Cost (A110 12/31/07 $ 2.749,378 12/31/06 2.665,493 12/31/05 2399,228 HE Percentage of APC Net Pension Contributed Obli �atc ion 100% 100% 100% CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2009 NOTE 17. DEFINED BENEFITPENSION PLANS —Continued Illinois Municipal Retirement Fund - Continued C. Annual Pension Cost - Continued For December 31, 2006, the Township's annual pension cost of $20,372 was equal to the Township's required and actual contributions. The required contribution was determined as part of the December 31, 2003 actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) 7.50% investment rate of return (net of administrative expenses), (b) pigjecled salary increases of4% a year, attributable to inflation, (c) additional projected salary increases ranging front 0.4%. to 11.6% per year depending on age and service, attributable to senioritydncrit. and (d) post -retirement benefit increases of 3% annually. The actuarial value of IMRF assets was determined using techniques that smooth the effcctsofshoit-term volatility in the market value of investments over a five-yearperiod with a 15%corridor. The assumptions used for the 2006 actuarial valuation were based on the 2002-2004 experience study. Three -Year Trend Information for 1MRF - Township Actuarial percentage Valuation Annual Pension of APC Net Pension Date Cost (A PC) Contributed Oblination 12/31 AM $ 20,372 100% - 12/31/t15 20,476 100% - 12/31/04 3,977 100% - Police and Firefighters' Pension Plans D. Plan Descriptions I he Police Pension Plan and Firefighters Pension Plan are contributory, defined benefit public employee retirement plans administered by the City and a Board of Trustees for each Fund. All sworn City police effect sand firefighters arc participants in the plans. The plans do not issue stand-alone financial reports and they are not included in the report of a public employee retirement system or another entity. The City's payroll fur police and firefighleremployces covered by the plans for the year ended February 28. 2007 was $11,522,000 and $8,402,000 respectively and for February 29, 2008, it was $12,142,000 and $8,999,000, respectively. 82 - CITY OF EVAN'STON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Lnding February 29, 2008 NOTE 17. DEFINED BENEFIT PENSION PLANS —Continued Police and Firefighters' Pension Plans - Continued D. Plan Descriptions - Continued Participation in the plans at Fehruary 28, 2007 was: Retirees, disabled participants, and beneficiaries of deceased retirees currently receiving benefits Active plan members Total Participation in the plans at Fela uary 29, 2009 was: Retirees, disabled participants, and beneficiaries of deceased retirees currently receiving henefrts Active plan members Total Police Firefighters' 156 116 160 108 316 224 Police Firefighters 160 117 161 113 321 230 Any police officeror firefighterwho has creditable service of20 years or more, has reached age 50, and is no longer in the service, is entitled to a yearly pension equal to 50% of the salary attached to the rank held lbrr one year immediately prior to retirement in the case nf'a police officer, and at the date of retirement in the case of a firelighter. ']'he police ofticerpension is increased by 2.5% of such salary for each additional year of service over 20 years to a maximum limit of 75% of'such salary. The firefighter pension is increased by 1/12 of 2.5% of such monthly salary for each additional month over 20 ),cars of service through 30 years of service to a nmimunt of 75% of such monthly salary. Police Firefighters' Pension Fund Pension Fund Actuarial assumptions: Investment rate of return 725% 7.25% Projected salary increases 5.00% 5.00% Attributable to inflation 3.50% 3.50% Cost of Living Increases 3.00% 3.00% -811- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 17. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans - Continued D. Plan Descriptions — Continued A police officer or finefighterwho retires or is separated from service after accumulating at least eight years for a police officer and 10 years for a firefighter, but less than 20 years of creditable service, will receive a monthly pension after attaining the age of 60 based on the salary attached to the rank held for one year immediately prior to retirement or separation in the case of a police officer and at the date of retirement or separation in the case of a firefighter. The amount of the benefit is a tabular percentage ol'such salary ranging front 15% for 10 years of'service to 50% for 20 years of service. These benefit provisions and all other requirements arc established by state statute. E. Summary of Significant Accounting Policies Basis of Accounting The Police and Firefighters' Pension Fund financial statements arc prepared using the accrual basis ofaccounting. Plan member contributions arc recognized when due. Employerconn ibutions to each plan arc recognized when due, pursuant to formal coil) n ittment as well as statutory or contractual requirements. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Administrative cost for Police and Firelighters are finance by investment income. Method Used to Value Investments Investments are reported at fair value. Short-term investments arc reported at cost, which approximates fair value. Seem dies traded on a national or international exchange arc valued at the last reported sales price at current exchange rates. Investments that do not have an established market arc reported at estimated fair value. F. Contributions and Reserves Hunployee contribution rates arc established by statute at 9.91 % of a police officer's salary and 9.dG°/, of a tirefighler's salary. Accumulated employee contributions arc refunded if an employee leaves covered employment or dies before eight ),cars of credited service in the case of police officers and 10 years in the case of firefighters. 8a - CITY OF EVANSI'ON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE, 17. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans — Continued F. Contributions and Reserves — Continued For employer contributions, the City's budget policy is to fund pension plans at the funding level recommended annually by the actuary. The General Fund is used to liquidate the net pension obligation. The City's annual pension cost and net pension obligation to the Police and Firefighters' pension funds were obtained from the funds most recent actuarial valuations (March 1, 2007 and March 1, 2008) and are as follows for both ),cars: Police Firefighters' Annual required contribution $ 4,636,539 $ 4,174.271 Interest on net pension obligation 617,791 403,732 Adjustment to annual required contribution (525,516) (343,429) Annual pension cost 4,728.814 4,234,574 Contributions made (4,327,012) (3,690,201) Increase in net pension obligation 401,802 544373 Net pension obligation at March 1, 2006 8,237,212 5,383,088 Net pension obligation at March 1,2007 $ 8.639.014 $ 5,927,461 Police Firefighters Annual required contribution $ 6,659,960 $ 5,486,699 Interest on net pension obligation 626,329 429,741 Ac justnncnt to annual required contribution (496,584) (340,720) Annual pension cost 6,789,705 5,575,720 Conti ibutions made (4,327,745) (4,161,537) Increase in net pension obligation 2,461;960 1,4141183 Net pension obligation at March 1, 2007 8,639,014 5,927,461 Net pension obligation at March 1, 2008 $ 11,100,974 $ 7.341,644 The difference between the total amount funded and the amount to be funded, as actuarially determined, is recorded as the net pension obligation in the general long-term debt schedule. The total pension liability calculated as the net pension liability dates forward from fiscal year 1987-88. 85 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year landing February 29,2008 NOTE. 17. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans — Continued G. Concentration of Investments The Police Pension Trust Fund had no significant investments (other than U.S. Government and U.S. Government - guaranteed obligations) in any one organisation that represented 5%or more of net assets available for benefits. fhe Firefighters' Pension trust Fund had no significant investments (other than U.S. Government and U.S. Government guaranteed obligations) in any one organization that represented 5% or more of net assets available for benefits. If. Three -Year Trend Information — Pension Trust Funds Fiscal Annual Pension Percentage of Net Pension Ycar Ended Cost (AFC) APC Contributed Obli vas tion Police 2/29/08 $ 6,789,705 91.52 % $ 11,100.974 2/28/07 4,728,814 99.62 8,63%014 2/28/06 4,388343 106.25 8,237,212 2/28/05 4,157307 73.87 8,265,927 2/29/04 4,361,218 107.87 7.330,143 2/28/03 3,595,566 99.02 6,847,380 Firefighters' 2/29/08 $ 5,575,720 98.27 % $ 7,341,644 2/28/07 4,234,574 93.89 5.927.461 2/28/06 3973,339 104.44 5.383,088 2/28/05 3,364,452 80.67 4,923,431 2/29/04 3,091,174 106.37 4.052,686 2/28/03 2,733,913 100.63 3,969,516 The required supplementary information immediately follows the Notes to the Financial Statements. CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 17. DEFINED BENEFIT PENSION PLANS -Continued Police and Firefighters' Pension Plans — Continued 1. Pensions - Detailed Statement of Net Assets Assets Cash and short-term investments Receivables Accrued interest Due Iron other funds 'total Receivables Investments, at fair value U.S. Government obligations Common stock Mutual funds Total Investments Total Assets Liabilities Vouchers payable Due to other funds 'Total Liabilities Net assets held in trust for pension benefits Firefighters, Pension Police Pension $ 1672,999 $ 3,960,081 $ Total Pension 7,633,080 219,488 243,607 463,095 1,565,730 2,155306 3,721,436 1385,218 2399,313 4,184,531 22,324,295 32,755.621 55,079,916 11,582,476 - 11,582,476 5 981,864 2.3 425,835 29,407,699 .39.888,6.35 56,181,456 96,070,091 45,346,852 62,540,950 107,887,702 3,087 15,517 18.604 3,087 15,517 18,604 $ 45,343,765 $ 62,525.333 $ 107,869,098 87 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29, 2008 NOTE 17. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans — Continued J. Pensions - Detailed Statement of Changes in Net Assets Firefighters' Police Pension Pension Additions Contributions Employer Plan tnentbers Total Contributions investment income Net appreciation in fair value of investments Interest Total investment income Loss investment expense Net investment income Total Additions Deductions Benefits Refunds of contributions Administrative expense Total Deductions Net increase Net assets held in trust for pension benefits Beginning of year End of year $ 4,161,537 $ 4,327,744 $ 811472 I,230.372 41974,009 5,558.116 Total Pension 9,499,291 2,042,844 1 Q532,125 (297,638) (123,630) (421,274) 1,666,420 2,205,575 3,871,995 1,368,782 2,081,939 3,450,721 235,666 94,305 329,971 1,133,116 1987,634 1120,750 6,107,125 7,545.750 13,652,875 4,521,753 6,757,102 11,278,855 - 64,234 04,234 24,363 39,432 63,795 4,546,116 6,860,768 11,406,884 1,561,009 684,982 2,245 991 43,782,756 61,840,351 105,623,107 $ 45,343,765 $ 62,525333 $ 107,869,098 - 88 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 29,2008 NOTE 17. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans — Continued K. Pensions -Actuarial Valuations The information presented in the Notes to the Financial Statements was determined as part of the actuarial valuations at the dates specified. Additional information as of the latest actuarial valuation follows: Firefighters' police pension Pension Fund Fund Valuation date March 1, 2007 March 1, 2007 Actuarial cost method Entry -Age Normal Entry -Age Normal Amortization method Level Percentage of Level Percentage of payroll, closed period payroll, closed period Remaining amortization period 26 Years , 4 months 26 Years, 4 months Actuarial valuation method 4-year smoothed mkt. 4-year smoothed mkt Firefighters' Police Pension Pension Fund Fund Valuation date March 1, 2008 March 1, 2008 Actuarial cost method Entry -Age Normal Entry -Age Normal Amortization method Level Percentage of Level Percentage of payroll, closed period payroll, closed period Remaining amortisation period 26 Years , 4 months 25 Years, 4 months Actuarial valuation method 4-year smoothed mkt 4-year smoothed mkt _g9_ This page has been intentionally left blank. REQUIRED SUPPLEMENTARY INFORMATION CITY Oh EVANSTON, ILLINOIS Firefighters' Pension Pond, Police Pension Pond, and Illinois Municipal Reurement Fund Schedules of Funding Pi ogi oss Required Supplementary Information February 29, 2008 Actuarial Actuarial Accrued Unfunded Percentage Actuaral Value of Liability (AAL) AAL Funded Covered of Covered Valuation Assets Projected Unit Credit (UAAI) Ratio Payroll Payroll Date (a) (b) (b-a) (a/b) ( c ) ((h-al/c) FnellghtelS penman 3/l/2008 $ 47006,917 1 111,696,236 $ 54,689,319 4208% $ 8,999,000 71895% 3/)/2007 43,742,297 106361,853 62,619,556 4113% 8,402,000 74529% 3/l/2006 40,653,428 94,413,071 43,759,643 4816% 8,150,000 53693% 3/l/2005 38,327,422 78359,019 40,431597 4866% 7.684,000 526 18% 3/1/2004 37,420,932 75,342,794 37921,862 4967°% 7,376,000 51413% 3/1/2003 33,905,858 63.214,068 29,308,210 5364% 7,493,000 39114% 3/l/2002 34,837,194 58,982,455 24,145,261 5906% 7,045000 34273% 3/1/2001 33,931,179 54,983,667 21,052,488 6171% 6,468,000 325,49% 3/l/2000 33,150,978 51,490,156 19,329,178 6440% 6,020,000 30447% 3/1/1 Q99 30,669,327 49,932,007 18,262,680 6268% 5,720,000 31928% Police Persian 3/l/2008 $ 64,355,651 $ 145,458,945 $ 81,103294 4424% $ 12,142,000 66796% 3/12007 61,795,438 139,371,086 77,575,648 44 34% 11,522 000 673 28% 3/1/2006 58,400,853 112,449,880 54,048,027 5194% 11,195,000 48279% 3/)2005 55,269,914 106,426,694 51,156,780 5193% 10,642,000 48071% 3/l/2004 54,469,873 101824,016 47,354,143 5349% 10,217,000 46348% 3/1/2003 48,531,981 98,307,729 49,773,748 4937% 10,074,000 49409% 3/1/2002 50,171,007 90,436,150 40,265,143 5548% 9,945,000 40488% 3/1/2001 49,077,641 85,727,076 36,649,235 5725% 9,443000 38811% 3/l/2000 47,127,865 80,142,075 33,014210 5881% 9,005,000 36662% 3/l/1999 43,874,772 73,577,492 29,702,720 5963% 9,424,000 35260% Illinois Municipal Retnement Fund (City) 12/31/2007 $ 88,101,956 $ 84,705,898 $ (3,396,058) 104 01% $ 34,496,595 - 12/31/2006 87,758,000 92928,874 (4,830,026) 10582% 32,625.369 - 12/31/2005 82,369,849 79,384,403 (2,984.A46) 103761% 31,401514 - 12/31/2004 77,206,655 74,129,924 (3,076,731) 10415% 29,568,219 - 12/312003 76,984,367 70,647,540 (6,336,827) 108 97% 29,240 514 - 12/31/2002 76,316,234 64,062,155 (12254,079) 11913% 26G93,089 - 12/31/2001 76,203,038 59,669,590 (16,533,448) 127 71% 25,43i 926 - 12/31/2000 70365,652 54,227,258 (16,138,394) 12976% 23,806,923 - 12/31/1999 61752,937 49,606,631 (12,146306) 12449% 22,472,238 - 12/31/1998 50,646 948 46,788,407 (3,858,541) 108 25% 21,639,257 - Illinois Municipal Rertement Fund ('Township) 12/31/2006 $ 514,875 $ 321,366 $ (193,509) 16021% $ 244,707 - 12/31/2005 413,112 253,244 1,15v,8(,8) 16313% 314,044 - 12/31/2004 612,303 450398 (1(,l }a)5) 135 95% 325,805 - 12/31/2003 585,069 429,243 (155,826) 13630% 345639 - 12/31/2002 810,301 512878 (297424) L5799% 338,707 - 12/31/2001 817,333 565,556 (251377) 144 52% 298,428 - 12/31/2000 851,413 529,330 022 n8t) 160 85% 358,218 - 12/31/1999 894,898 684060 1210,838) 130 82% 378,974 - 12/31/1998 715,669 559,842 (155,827) 127 83% 369,200 - 12/31/1997 747,332 682,880 (64,452) 10944 % 386,400 - -90- CITY OF EVANSTON, ILLINOIS Firetightets and Police Pension Funds Schedules of Finploycr Contribution Required Supplementary information February 29, 2009 Pitefighlcrs' Pension Fund Police Pension Pond Amoral Annual Tax Levy Requited City's Percentage Required Cily's Percentage Year Contribution Contribution Contributed Contribution Conti ibution Contributed 2007 S 4,174,271 N/A N/A $ 4,636,539 N/A N/A 2006 3,921,530 $ 3,867,153 98.61% 4,301,359 $ 4,217,457 98.05% 2005 3.317,158 3,459,626 104.29% 4,071,765 4,295,601 105.50% 2004 3,04 L911 3,398,340 111.72% 4,274,043 4,271.102 99.93% 2003 2685.046 2,690.742 100.21% 3,505,934 3,521862 100.48% 2002 2,355,236 2,374,744 100.83% 3,224,902 3,252113 100.84% 2001 2,209.466 2,324,407 105.20% 2,990,038 3,038,432 101.62% -91- CITY OF EVANSTON, ILLINOIS Genet al Fund Schedule of Revenues, ENpendiuues, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Requited Supplementary Information Year ended February 29, 2008 Original Bud,,et Penal Budect Actual Variance Revenues Talcs $ 42,227,262 $ 42,227,262 $ 42,475,450 $ 248,188 Licenses and permits 7,657,300 7,657,300 10,275,694 2,618 ?94 Intergovernmental 16A87,000 16,187,000 17,582,733 1,395,733 Changes for services 7,418,400 7,418,400 7,732,399 313,999 Pines 4,162,000 4,162,000 4,660 258 498,258 Investment income 400,000 400,000 623,865 223,865 Miscellaneous 3,113,055 3,113,055 2.998910 (114,145) Total Revenues 81.165,017 81,165,017 86,349,309 5, 184.292 Fxpendrlmes Geneial management and support 13,648,282 15.398.282 15,379,554 18,728 Public safety 31,005,863 31,080,863 32,455,754 (1,374,891) Public works 16,031,817 16,294,317 16,218,311 76,004 l lealth and human rcSnmce development 3,962,500 3,962,500 4,181,129 (218,629) Reacation and cultural opportumticS 18,417,000 18,417,000 18,228,700 188,300 l lousing and economic development 3,452,500 3,452,500 3,486,675 (34,175) '!oral Expendrtures 86,517,962 88,605,462 89,950,125 (1,344,663) (Deficiency) of Revenues (under) Expenditures Olhcr Financing Sources (Uses) Operating uanSfelS to (out) Motor Fuel Tax Fund Affordable 1lousmg Fund Central Business "fax Inccicmenl Dlsu ict Washington Natl Tax inclement msluct Iio vaid IIat bey pax Increment Dish ict Southwest Tax Increment District Motor Vehicle Parking system Capital lmprovemcnl Fund Capital Impnovcmcnl Fund Maple Avenuc (auage .Special Assessment WIWI Fund (icnetal Obligation Debt Service Fund I lowaul ILdgc Tax Increment District Fxces$ of Revenues and Other Financing Sources over Expenditures and Others financing Uses Fund Balance Beginning of year Fad oryean (5,352,945) 772,500 31,800 325,000 144,800 135,000 23,000 517,200 800,000 (2.625,000) 43,000 31,900 2,693,600 (127,400) 114,793 1880,093 (7A,10,445) (3,600,816) 3,839,629 772,500 31,800 325,000 144,800 135,000 23,000 517,200 800,000 (2,625,000) 43,000 31,800 2,693,600 (127,400) 114,793 2,880,093 $ (2,472.852) $ (4,560,352) Note The budget was amended on Febwary 25. 2008 -92- 772,500 31,800 325,000 144,800 135,000 23,000 517,200 800,000 (2,625 000) 43,000 31,800 2,693,600 (127,400) 114,793 2,880,093 (720,723) $ 3,839,629 35,335,560 $ 34,614,837 CITY OF EVANSTON, ILLINOIS Notes to the Required Supplementary Information NOTE 1. DIGEST OF CHANGES - IMRF The actuarial assumptions used to determine the actuarial accrued liability for 2008 are based on the 2002-2004 Experience Study. The principal changes were: -The 1994 Group Annuity Mortality implemented - For regular members, fewer normal and early retirements are expected to occur. NOTE 2. CONVERSION FROM GAAP BASIS TO BUDGETARY BASIS Adjustments necessary to convert City revenues and expenditures for the year ended February 29, 2008 on the GAAP basis to the budgetary basis are presented below: General Fund Revenues GAAP basis revenues as reported in the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances $ 86,767,588 Increase (decrease) due to budgeting property taxes as revenue in the year of levy (418,279) Budgetary Basis Revenues $ 86,349,309 Expenditures GAAP basis revenues as reported in the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances $ 89,893,331 Increase (decrease) due to Encumbrances - March 1, 2007 (80,388) Encumbrances - February 29, 2008 137,182 Budgetary Basis Expenditures $ 89,950,125 -93- This page has been intentionally left blank. GOVERNMENTAL FUND TYPES Nonmajor Governmental Funds Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes. City Funds Motor Fuel Tax - to account for the operation of street maintenance programs and capital projects as authorized by the Illinois Department of Transportation. Financing is provided from the City's share of gasoline taxes. Economic Development - to account for cost associated with economic development activities of the City. Financing is provided primarily by real estate transfer tax revenues. Emergency Telephone System - to account for revenues and expenditures for 911 emergency telephone service. Financing is provided by network connection surcharges. Library - to account for the activity of the funds donated to the library. These funds are invested at the direction of the library board and are used for library acquisitions. Neighborhood Improvement - to account for a portion of the sales tax revenues derived fi om retail sales of the I Ionic Depot U.S.A. Inc. store in Evanston. Sales tax revenues allocated to this fund are to be expended on public projects that will benefit the immediate neighborhood of the store. Mayor's Special I ]ousing - to account for costs associated with housing -related programs of the City. Affordable Housing - to account for costs associated with housing -related programs of the City. HOME - to account for the activity of the HOME program. Financing is provided by the federal government. Expenditures are made in accordance with the requirements of federal law. Community Development Block Gant - to account for revenues and expenditures of the community block grant program. Financing is provided by the federal government on a reimbursement basis in accordance with federal formula. Expenditures are made in accordance with requirements of federal law. Community Development Loan - to account for residential rehabilitation loans to residents. Special Service District No. 4 - to account for promotion, advertisement, and street maintenance costs of the area located in the City's central business district. Financing is provided by the City through an annual property tax levy. Continued Special Revenue Funds - Continued Employer Pension Contribution - to account for the recognition of applicable tax revenues and employer contributions to the Pension Trust Funds. These contributions represent the City's pension expense for police and firefighters. Township Funds Town - to account for general adntinstrative services. General Assistance - to account for the assistance given to persons and/or families to meet their basic living expenses. Debt Service Funds Debt Service funds are used to account for the servicing of general long-term debt. General Obligation Debt - accumulated monies for the principal and interest payments on general obligation debt. Special Service District No. 5 - accumulated monics for the principal and interest payments on unlimited ad valorem tax bonds issued for this special taxing district. Central Business Tax Increment District - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Southwest Tax Increment District - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Howard 1larhey Tax Increment District - accumulated monies for the principal and interest paymcnls on debt issued for this special taxing district. Washington National Tax Increment District - accumulated monics for the principal and interest payments on debt issued for this special taxing district. Howard Ridge Tax Increment District - accumulated monies for the payments on redevelopment project for this special taxing district. West Evanston Tax Increment District - accumulated monies for the payments on redevelopment project for this special taxing district. Continued This page has been intentionally left blank. Capital Projects Funds Capital projects are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Central Business Tax Increment District - to account for the purchase of land and other related costs of the research park. Financing is provided front general obligation bond and note proceeds. Washington National Tax Increment District - to account for the costs of redevelopment of this special taxing district. Financing is provided from general obligation bond and note proceeds. Special Assessment - to account for capital improvements financed by special assessments on property holder and public benefit contributions from the City. CITY OF FVANSPON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet February 29, 2008 Assets Cash and equivalents Investments Receivables Property taxes (net of allowance) Current year Ievy Notes Accounts Allowance Special assessments Accrued interest Other Building held for resale Due from other governments Due four other funds i oU Assets Liabilities and Fund Balances Liabilities Vouchems payable Other Due to other governments Due to other funds Defcned revenues 'iota) Liabilities Fund Balances Reserved for notes receivable Reseved for debt service Rescwcd for I IUD Approved Projects Unreserved Capital projects Undesignaled Total Fund Balances 'fetal Liabilities and Fund Balances Special Revenue Emergency Motor Economic Telephone Neighborhood Fuel fax Development System Library Impwvenent $ 1,373,942 $ 1,494,730 $ 2,299,366 $ 378,138 $ 82,498 - - - 2.342406 - - - 3,145 - 17,166 205.882 - - 159,686 - - - - 488 - - 33,600 40,000 $ 1.534,116 $ L511,896 $ 2,505,249 $ 2,757.289 $ 122,498 $ 20,131 $ 8,772 $ 33,431 $ 4,891 11,635 20,131 13,663 45.066 1,513,985 - - 2,757.299 - 1-498.233 2,460.182 - 122.498 1,513 ,985 1,498,233 2,460,182 2,757,289 122A98 $ 1,534,116 $ 1,511,896 $ 2.505,248 $ 2.757,289 $ 122,498 -94- Special Revenue Special Mayor's Community Community Scrvice I?mploycr "Total Special ATToidable Development Development Disnicl Pension City Housing housing HOME. Block Chant Loan No. 4 Contribution Funds $ - $ 631,196 $ 24,894 $ - $ 457,845 $ - $ - $ 6,742,609 - - - - - - - 2,342,406 - - - - - 440,779 8,543,406 8,984,185 1.357.839 3,039,495 24;800 1,715,052 - - 6, 137.186 - - - 3,498 - - - 3.498 - - - (12,000) (79,000) - - (90,000) $ - - - - - - 3,145 2,167 - - - - - 225,215 - - 410.000 - - - 410,000 - 55,567 6,481 - - - 221,734 19.940 - 34,541 2,997 - - 131.506 - $ 2.011,142 $ 3,119.956 467.320 $ 2,09Z894 $ 440.779 $ 8,543,406 $ 25.111,544 - $ 840 $ 1,785 $ 35,882 $ 2,949 $ - $ - $ 103,790 - - - - 2,880 - - 2.880 - - - - 3,075 - - 3,075 - - 28,921 8,639 488 20,737 3.609,032 3.684.343 - - - - - 206.521 4,934374 5.200.895 - 840 30,706 44,521 9,392 287,258 8,543,400 8.994,983 - 1,357,839 3,039,495 12.799 1,637,052 - - 6,047,185 - - - 410.000 - - - 410.000 _ - - - _ _ - 4,271,274 - 652463 49.755 - 451.450 153,521 - 5388,102 - 2.010,302 3,099.250 422,799 2.08A502 153.521 - 16,116.561 - $ 2.011,142 $ 3.119.956 467,320 $ 2.097,894 $ 440.779 $ 8,543A06 $ 25,111,544 -95- Continued CITY OF EVANSTON, ILLINOIS Nomnajor Governmental Funds Combining Balance Shect - Continued 2/29/2008 and 03/31/07 for City and Township respectively Special Revenue total 'Town Geneial 'Township Fund Assistance Funds Total Assets Cash and equivalents $ 551435 $ 776.838 $ 1,329,273 $ 8,071,892 Investments - - - 2,341406 Receivables Property taxes (net of allowance) Current year levy 232.176 619,154 851,330 9.835,515 Notes - - - 6,137,186 Accounts - - _ 3,498 Allowance - - - (90,000) Special assessments - - - - Accrued interest - - - 3,145 Other - 18,453 18;453 243,668 Building held for rosale - - - 410.000 Due from other governments - - - 221,734 Due from other funds - 6.074 6.074 137,640 Total Assets $ 784.611 $ 1,420,519 $ 2.205.130 $ 27,316.674 Liabilities and Fund Balances Liabilities Vouchers payable $ 114.372 $ 46,283 $ 160,655 $ 264,445 Othcr - - - 2,880 Due to other governments - - - 3A75 Due to other fluids 6,074 - 6.074 3,690,417 DCflTed revenues 212.015 565A00 777,415 5,978,310 Total Liabilities 332,461 611,683 944,144 9,939.127 Fund Balances Reserved for notes receivable - - - 6,047,185 Reseved for debt service - - - - Reserved for HUD Approved Rojccts - - - 410,000 Urn eseived Capital projects - - - 4,271,274 Undesignated 452.150 808,836 1.260,986 6.649,088 Total Fund Balances 452.150 808,836 1,260,986 17.377547 Total Liabilities and Fund Balances $ 784,611 $ 1,420.519 $ 2.205.130 $ 27,310,674 Iff-M Debt Service Cenn'al Iloward Washington ❑owai'd West Special Business Southwest Harney National Ridge Evanston General Service Tax Tax 'rax Tax Tax Tax Obligation District Increment Increment Increment Increment Increment Increment Debt No.S District District District District DiSIT 'ict District Total $ L653,321 $ 8,746 2,374.242 $ 131,918 $ 3.507.184 $ 2-619,955 $ 159,786 $ 20,231 $ 10.474,383 - - 1,492.832 - - 991.605 - - 2,474,437 8,202,397 422.572 8,573,750 597,858 1.157312 2.179.420 99,835 37,764 21,270,908 I.o 19,989 20.737 - - - 3,322,417 - - 4363.143 $ 10,875,707 $ 452,055 $ 12-430.824 $ 729,776 $ 4,664,496 $ 9.112,397 $ 259.621 $ 57.995 $ 38.582,871 $ 1,009 $ - $ 880 $ - $ - $ - $ - $ 195 $ 2,084 33,120 - - - - 742,037 - 9,995 785.752 4,695,011 22L538 7,420,042 287,896 521,434 1.297,723 50.390 18.696 14.512.730 4.722140 221.538 7,420,922 287,896 521,434 2,040,360 50390 28,886 15,300,566 6.146,567 230,517 5,009,902 441 MO 4,143,062 7,072,037 209,231 29,109 23,282.305 6,146.567 230.517 5A9902 441,880 4.143,062 7.072.037 209,231 29.109 23282305 $ 10,875,707 ,$ 452.055 $ 12,430.824 $ 729,776 $ 4,664,496 $ 9.112,397 $ 259.621 $ 57,995 $ 38.582.871 Continued 97 - This page has been intentionally left blank. CITY OR EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet - Continued February 29, 2008 Capital Projects Central Washington Business National 'Total Fax "fax Nonmajor Increment Increment Special Governmental District District Assessment Total Funds Assets Cash and equivalents $ 3,959,010 $ 13,600 $ 3,728,912 $ M011522 $ 26.247.787 Investments - - - - 4,816,843 Receivables Property taxes (act of allowance) Curl cat ),car levy - - - - 31,106,423 Notes 96,649 - - 96,649 6,233,835 Accounts - - - - 1498 Allowance (96,649) - - (96,649) (186,649) Special assessments - - 1,087,014 1,097,014 L087,014 Accrued interest 9.129 - - 9,129 12,274 Other - - - - 243.668 Building held for resale - - - - 410.000 Due from other governments - - - - 221,734 Due from other funds - - 477 477 4.501.260 Total Assets $ 3,968.139 $ 11600 $ 4.816,403 $ 8,798,142 $ 74,697.687 Liabilities and Fund Balances Liabilities Verdicts payable $ 67M2 $ 1 L388 $ 75 $ 78,465 $ Other Duc to other governments - - - - Due to other funds 190 196,799 - 196,999 Deterred revenues - - L087MI4 L08M14 'total liabilities 67, 192 208.197 1,087.089 1,362,468 Fund Balances Reserved for notes Icceivable - - - - Rcsevcci for debt service - - - - Reserved for IIUD Approved Projects - - - - unleselml Capital prgjects 3.900.947 (194,587) 3,729,314 7A35,674 Undesignated - - - - Total Tend Balances .1,900,947 (194.587) 3,729.314 7,435.674 'fetal liabilities and Fund Balances $ 3,968,139 $ 13,600 $ 4,816,403 $ 8.798.142 MF)C 344,994 2,880 3.075 4,673,158 21.578.054 26.602,161 6.047.185 23,282,305 410,000 11,7W WS 6,64098 48,095,526 $ 74.697,687 Concluded CITY OF EVANSTON, ILLINOIS Nonmalor Governmental Funds Combining Statements of Revenues, Expenditures, and Changes inFund Balances Year ended February 29, 2008 Special Revenue Ennergency Motor Fconomic Telephone Nenghbolhood Fuel Fax Development Svstcm Lnbrary Immnrovement Revenues 'Faxes $ - $ 1,818,771 $ 1221,274 $ - $ 40,000 Special assessments - - - - - hnergovemmental 2,100,039 - - - - Investment income 82,821 72,356 94,936 242,410 - SSI reinibuncnlcnt - - - - - Idnlcrgency assistance winibursement - - - - - Miscellaneous 975 - 19 17.762 - Total Revenues 2.183.835 1.89L 127 1.316.229 260.172 40.000 Expenduutes Current General management and support - _ _ _ - Public safety - - 954, 141 - - Publiclvotks 1,844,558 - - - - Health and hntllan I'csouice development - - - - - Recication and cullmal opportunities - - - 312,849 - I lousing and economic development - 1,037,237 - - - Debt service Principal - - - - - Intelest - - - - - Fiscal agent fees - - - - - Capital outlay - - - - - Tolal Expcnditulcs 1.844,558 1,037.237 954-141 312 849 - Excess (Deficiency) of Revenues Over (Under) Bxpenditures 339.277 853.890 362.088 (52.677) 40.000 Other Financing Sotuces (Uses) Bonds issued - - - - - Bum Funding - - - - - Premiums and discount - - - - - 'ltansfers In ((lilt) General Fund (772,500) CommILumily Development Block Giant - - - - - Community Development Loan - _ _ _ Affordable l touring - - - - - Mayor's Special I lousing - - - - - Town Fund _ _ _ _ _ (3encial A."istalice Fund General Obligation Debt SCtvice Fund - Washington National Fax Increment District - - - - - West I'Vamton - - - - - Special Assesshnent Capital I)olect - - - - - Maple Avenue Garage - (650,000) - - - Sherman Garage _ Total Other Financing SOurCCS (Uses) (772.500) (6%000) - - - Net Change in Fund Balances (433,223) 203.890 362.088 (52.077) 40.000 Fund Balances -Beginning of Ycm 1.947.208 1.294.343 2,098.094 2.R09. 966 82.498 Fund Balances -1'nd of Year A 1 513 995 6 1 49,9233 A 2 460 192 S 2 757 289 .S 122 49R in Special Revenue Special Mayor's Community Community Semee Employer Total Special Affordable Development Development Dish let Pension City I lousm: Ifousme IIOMH Block Grant Loan No 4 Contribution Funds $ - $ - $ - $ 303,237 $ 8AW281 $ 11.872,563 - - 438,116 2,043,852 - - - 4,582,007 - 16,994 13,492 - 8,181 501 - 531,591 - 384.341 - 424972 - - - 828.069 - 401235 451.608 2.468,824 8,181 303 738 8.489.281 17,814.230 - - - - - - 8,489,281 9,441422 - - - - - - - 1,844,558 - - - - - - - 312,849 - 47,564 10202 2,146,429 23,086 245,000 - 3,601,918 - 4T564 102,602 2.146.429 23.086 245.000 8489.281 15.202.747 353.671 349.006 322.395 (14,905) 58.738 - 2.611.483 - (31,800) _ _ _ _ _ (804,300) - - - - (62,045) - - (62,045) - - - 62,045 - - - 62,045 (1,558,431) - - - - - - (1,558,431) - 1,558,431 - - - - - 1,558,431 - - - 15,565 - - - 15,565 - - - 9,995 - - - 9,995 - - - - - - - (650,000) 11.558A31) 1,526.631 - 87,605 (62,045) - - (1,428,740) (1S58A31 -L558AM 1M0.302 342006 410.000 (76.950) 58.738 - 1.181743 130,000 2,740.244 12.799 2, 165.452 94.783 - 14933.818 $ - X 2 010 3(12 9; 3 099 250 $ 422 799 S 2 O88 502 `± 153 521 $ $ 16.116.561 Continued Em CITY OF FVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Statements of Revenues, Expenditures, and Changes at Fund Balances - Continued Year Ended February 29, 2008 and Mawh 31, 2007 for City and Townslup respectively Special Revenue Total Town General Township Fund Assistance Funds Total Revenues 'faxes $ 344,302 $ 908,797 $ 1,253,099 $ 13,125,662 Special assessments - - - - Intel govennncntal 59,805 - 59,805 4,641,812 Investment income 17,817 23,010 40,827 572418 SSl reimbursement - 18,853 18,853 18,853 Emergency assistance rennburscnient - 46,695 46,695 46,695 Miscellaneous - - - 828.069 Total Revenues 421,924 997.355 1.419279 19.233.509 Expenditures Cuncnt General management and support 257,251 855,035 1,112,286 1,112.286 Public safety - - - 9,443,422 Public woks - - - 1,844,558 ❑calla and human resource development - - - - Recreation and cultural opportunities - - - 312,849 Housing and economic development - - - 3,601,918 Debt service Pi incipal - - - - Interest - - - - Fiscal agent fees - - - - Capital outlay - _ _ - Total ispendianes 257.251 855.035 t.112.286 16.315.033 Excess (Deficiency) of Revenues Over (Under) Expenditures 164.673 142.320 306.993 2.918,476 Other Financing Sources (Uses) Bonds Issued - - - - Escrow funding - Picmiums and discount _ Transfers in (out) (icncral Fund - - - (804,300) Community Development Block Grant - - - (62,045) Community Development Loan - - - 62,045 Affordable l lousing - - - (1,558,431) Mayor's Special housing - - - 1,558,431 Town fund - 125,000 125,000 125.000 General Assistance Fund (125,000) - (125,000) (125,000) General Ohligation Debt Service Fund - - - - Washington National Tax Increment District - - - 15,565 West Evanson _ _ _ 9,995 Special Assessunent Capital Project - - - - Maple Avenue Garage - - - (650,000) Sherman Garage _ _ _ _ Total Other Financing Sources (Uses) (I25.000) 125.000 - (1.428.740) Net Change in Fund Balances 39,673 267.320 306993 1.489,736 Fetid Balances -Beginning of Yeas 412,477 54 L516 953.993 15.887.811 Fund Balances -1'ad of Yeas A 452 I sO k NOR N16 1 200996 A 17 177 547 101- Debt Service Central Ho\vaid Washington Howard West Special Business Southwest Ilartrey National Ridge Evanston General Service "fax Tax "Pax Tax Tax Fax Obligation Disu ict linacmenl Increment Increment Inclement Increment Increment Debt No District District District District District District Total $ 8,951,966 $ 429,318 $ 5,985,187 $ 634,393 $ 1,280,185 $ 2,406,539 $ 109,064 $ 51,535 $ 19,747,187 185,039 6,654 373,037 19,497 157,313 232,859 7,903 91 982,393 17.478 - - - - - - - 17 478 9, I54,483 435972 6.258.224 653.890 1.437.498 2.639.398 115967 51.626 20.747.058 124,645 - 6,481 2,362 113 719 719 26,003 161,042 - - - 800,000 - - - - 800,000 6,085,000 285,000 3,500,000 285,000 150,00 210,000 - - 10,815,000 4,297,999 157,313 229,080 24,938 247,095 171,904 - - 5,128,328 29,369 - 12,154 - - - - - 41,523 1 Q537M2 442.313 3.747,715 1, 112.300 697,208 382,623 719 26.003 16945,893 (I 382,529) (6.341) 2510509 (458.410) 74U90 2.256.775 115248 25,623 3.801.165 15,360.000 - - - - - - - 15,360,000 (15,590,051) - - - - - - - (15,590,051) 708,025 - - - - - - - 708,025 127,400 - (325,000) (23,000) (135,000) (144,800) (114,793) - (615,193) - - - - - (15,565) - (9,995) (25,560) 419,215 - - - - - - - 419,215 . - (4,600,000) _ - (4,600,000) - - (I,872.829) - - (500000) - - (2.372.829) 1,024,589 - (6,797,829) (23,000) (135,000) (660,365) (114,793) (2995) (6,716393) (357940) (6,341) (US7.320) (481.410) 605,290 1.596.410 455 15,628 f2915.228) 6.504.507 236.858 9.297222 923.290 3,537.772 5.475.627 208,776 13481 26, 19T 533 $ 6.146-567 $ 23M 17 $ 5 009 902 $ 441,880 $ 4,143,062 $ 7 072,017 $ 209 231 % 29.109 $ 23,292 305 Continued 102 - CITY OF EVANSTON, ILLINOIS No imajoi Governmental Funds Combining Statements of Revenues, Expenditures, and Changes at Fund Balances - Continued Year ended February 29, 2008 Capital Proiccts Central Washington Business National 'Total 1'ax 'far Nonmajor Increment Inclement Special Governmental District District Assessment Total Funds Revenues Taxes $ - $ - $ - $ - $ 32,872,849 Special assessments - - 520,239 520,239 520,239 Intergovernmental - - - - 4,641,812 Investment ncome 198,708 2,489 154,864 356,061 1,910,872 SSI ieimbursement - - - - 18,853 Limergency assistance reimbursement - - - - 46,695 Miscellaneous - - - 845.547 Total Revenues 198,708 2489 675.103 976.300 40 856,867 Expenditures Cuncnt General management and support 55,709 - 28,695 84A04 1;357,732 Public safety - - - - 9,443 422 Public works - 136,773 - 136,773 1,981,331 Health and human resource development - - - - 800,000 Recreation and cultural opportunities 99,660 - - 987660 411,509 Housing and economic dcvclopmcm - - - - 3,601,918 Debt service Principal - - - - 10,815,000 Interest - - - - 5,128,328 Fiscal agent fees - - - - 41,523 Capital outlay 495,296 251.624 - 746,910 746� 910 'Petal Expendituics 642655 388.397 28,695 1 066.747 34.327,673 Excess (Deficiency) of Revenues Over (Under) Expenditures (450.947) (385908) 646408 (190447) 6.529.194 Other Financing Sources (Uses) Bonds issued - - 91(),0()0 910,000 16,270,000 Escrow funding - - - - (15,590,051) Premiums and discount - - 21,206 21,206 729,231 Transfers in (out) General Fund - - (31,800) (31,800) (1,451,293) Community Development Block Grant - - - - (87,605) Community Development Loan - - - - 62,045 Affordable housing - - - - (1,558,431) Mayor's Special ]lousing - - - - 1,558,431 Town Fund - - - - 125,000 Gcnei al Assistance Fund - - - - (125,000) General Obligation Debt Service Fund - - (419,215) (419,215) (419,215) Washington National Tax Inacmenl District - - - - 15,565 West Evanston - - - - Q995 Special Assessurient Capital Project - - - - 419,215 Maple Avenue Garage - - - - (5,250,000) Sherman Garage - - - - (2.372.829) 'total Other Financing Sources (Uses) - - 480,191 480,191 (7,664 ,942) Net Change in fund Balances (450.947) 085MM 1.126.599 289.744 (1.135.748) Fund Balances -Beginning of Year 4351.804 191,321 2.602.715 7.145 930 49.231,274 Fund Balances - EDd of Ycin 3 900 947 R (194 597) R 3 729 114 R 7415074 R 48 095 526 Concluded 103 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) Year ended February 29, 2008 Original and Final Budget Actual Variance Taxes Property Current year levy $ 16,976,262 $ 16,516,641 $ (459,621) Prior year levy 25,000 219,251 194,251 Total Property Taxes 17,001,262 16,735,892 (265,370) Personal Property Replacement Tax 895,500 1,413,364 517,864 Other Taxes Auto rental 33,000 27,298 (5,702) Sales - home rule 6,030,000 5,911,796 (118,204) Utility 8,555,000 8,537,097 (17,903) State use 942,000 1,022,938 80,938 Athletic contest 510,000 596,776 86,776 Cigarette 550,000 443,205 (106,795) Evanston motor fuel 275,000 320,435 45,435 Real estate transfer 3,930,000 3,956,243 26,243 Poured liquor 1,800,000 1,750,381 (49,619) Parking 1,700,000 1,760,025 60,025 Amusement 5,500 - (5,500) Total Other Taxes 24,330,500 24,326,194 (4,306) Total Taxes 42,227,262 42,475,450 248,188 Continued 104 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Year ended February 29, 2008 Original and Final Budget Licenses and Permits Vehicle licenses $ 2,200,000 Business licenses 85,000 Long-term care licenses 113,000 Rooming house licenses 197,300 Pet licenses 44,000 Farmers' market licenses 24,800 Contractors' licenses 85,000 Building permits 2,810,000 Plumbing permits 140,000 Electrical permits 150,000 Elevator permits 40,000 Signs and awning permits 10,000 Combustion equipment permits 155,000 Commercial driveway permits 700 Other Penn its 250,000 Liquor licenses 340,000 Fire alarm permit fees - Cable franchise fee 720,000 Nicor franchise fee 65,000 Northwestern/Centel easement 47,000 Residents' parking permits 120,000 Visitor's parking permits 14,000 Sign license fee 32,000 Alarm panel franchise fee 14,000 Plat approval and sign appeal fees 500 Right of way permits - Total Licenses and Permits 7,657,300 105 - Actual 2,088,368 88,484 93,900 132,534 46,725 26,485 87,468 4,476,925 151,770 178,630 59,425 10,624 560,669 325 422,059 452,216 (150) 883,832 89,500 47,000 110,671 13,152 31,817 5,490 2,339 215,436 10,275,694 Variance (111,632) 3,484 (19,100) (64,766) 2,725 1,685 2,468 1,666,925 11,770 28,630 19,425 624 405,669 (375) 172,059 112,216 (150) 163,832 24,500 (9,329) (848) (183) (8,510) I'm 215,436 2,618,394 Continued CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - I3udget and Actual (Budgetary Basis) - Continued Year ended February 29, 2008 Intergovernmental - Revenue from Other Agencies Preventive health block grant Fire department training Illinois state health department basic services grant Bio-terrorrism grant Family planning grant Hearing and vision grant ICJIA grant - victim Other federal aid Violent crime victim assistance grant Law enforcement block grant Civil defense grants Retailer and service occupation tax State income tax State highway maintenance District 65 dental Commission on Aging grant Other state / county grants Police training grant Dental sealants grant Lead grant Federal grant / Aid Illinois Tobacco Free Community Summer food inspections Kid case agreement I -IUD emergency shelter grant Leadbase paint control grant Genetic education grant Prostate cancer awareness Family case management grant Teen parent service program Total Intergovernmental - Revenue from Other Agencies -106- Original and Final Budget Actual Variance $ 30,600 $ 45,918 $ 15,318 1,500 (17,612) (19,112) 76,000 38,090 (37,910) 59,000 - (59,000) 36,300 12,905 (23,395) 5300 - (5,300) 45,000 - (45,000) 16,000 - (16,000) 24,700 20,767 (3,933) 35,400 20,934 (14,466) 30,000 233,316 203,316 9,000,000 9,237,337 237,337 6,200,000 6,827,642 627,642 130,000 182,410 52,410 1,500 - (1,500) 43,600 57,868 14,268 - 133,880 133,880 8,000 8,000 - 2,800 1,286 (1,514) 2,000 587 (1,413) - 177,549 177,549 - 22,522 22,522 - 600 600 11,300 71,736 60,436 86,400 104,286 17,886 200,000 213,637 13,637 10,200 850 (9,350) - 5,951 5,951 96,400 152,774 56,374 35,000 29,500 (5,500) 16,187,000 17,582,733 1,395,733 Continued CITY OF FVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Year ended February 29, 2008 Charges for Services Recreation Recreation - program Total Recreation Library Film rentals Books, lost and paid Reserves Miscellaneous revenues Non-resident cards Copy machine charges Library meeting room rentals Rental income State library per capita grant Total Library Original and Final Budget Actual Variance $ 4,354,800 $ 4,503,360 $ 148,560 4,354,800 4,503,360 148,560 40,000 34,402 (5,598) 20,000 20,925 925 7,500 7,861 361 500 2,629 2,129 4,000 3,580 (420) 26,000 20,710 (5,290) 9,000 7,760 (1,240) - 30,888 30,888 91,400 90,356 (1,044) 198,400 219,111 20,711 Continued -107- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Year ended February 29, 2008 Original and Final Budget Actual Charges for Services Other Service Charges Family planning clinic $ - 197 Dental clinic fees and check up fees 126,000 111,692 Venereal disease program - Skokie - 1,650 Birth and death records 129,000 128,357 TB nursing services 12,000 4,900 IJealth clinic fees - immunizations - 524 Health clinic fees - sexually transmitted disease 6,700 - Health clinic fees - 7-B 2,700 942 Health clinic fees - lab 11,800 2,695 Health clinic fees - food establishment 150,000 165,578 S.T.D.O. and S.T.D.E. 5,300 1,990 Dental check up 9,000 6,295 Emergency dental exam 100 100 X-Ray - 40 Amalgam filling 400 - Resin filling 4,500 4,500 Sedative filling 100 - Extraction 200 160 Pulpotomy 800 520 Sealant office visit 700 435 Additional sealant 100 120 Temporary license fee 4,000 5,440 Food delivery vehicle 6,400 6,800 Scavenger truck 2,300 2,430 Beverage snack vending machine 34,000 24,674 Homeless health clinic - 30 Tobacco license 13.000 12,700 Funeral director license 6,300 6,510 Temporary funeral direct license 5,900 5,165 Ambulance services 750,000 846,037 Towing charges - (8,740) Weights and measures examination 1,000 265 Senior taxi coupon sales 92,000 95,014 Recycling- material sales - 1,435 I3ackground check daycare providers - 50 Police report fees 15,400 17,967 Child health 1,700 - Beekeeper licenses - 50 -108- Variance 197 (14,308) 1,650 (643) (7,100) 524 (6,700) (1,758) (9,105) 15,578 (3,310) (2,705) 40 (400) (100) (40) (280) (265) 20 1,440 400 130 (9,326) 30 (300) 210 (735) 96,037 (8,740) (735) 3,014 1,435 50 2,567 (1,700) 50 Continued CITY OF FVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Year ended February 29, 2008 Original and Final Budget Actual Charges for Services - Continued Other Scrvice Charges - Continued Fire report fees $ 1,000 $ 1,104 Fire cost recovery charges 10,000 29,475 Fire building inspection 8,000 5,950 Other service charges - 1,944 Condo conversion application 52,000 54,150 Zoning fees 45,000 42,721 Alarm panel subscription fees 110,000 137,030 Skokie animal boarding fees 600 25 Passport execution fees 10,000 - Sanitation classes and charges 60,000 74,435 Wood recycling - 26,425 Plan review 8,000 9,485 Recycling service charge and penalty 1,169,200 1,180,662 Total Other Service Charges 2,865,200 3,009,928 Total Charges for Services 7,418,400 7,732,399 Pines Ticket fines 3,300,000 3,572,381 Regular fines 270,000 251,814 Housing code violations - 4,865 Permit penalty fees 25,000 8,974 Animal ordinance penalties - 87,450 False alarm panel Cities - fire 150,000 424,700 Administrative adjudication 120,000 131,412 Library fines 182,000 177,962 Boot release fees 115,000 - Out of service - 700 Total Fines 4,162,000 4,660.258 Variance 104 19,475 (2,050) 1,944 2,150 (2,279) 27,030 (575) (10,000) 14,435 26,425 1,485 11,462 144,728 313,999 272,381 (18,186) 4,865 (16,026) 87,450 274,700 11,412 (4,038) (115,000) 700 498,258 - 109 - Continued CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Year ended February 29, 2008 Original and Final Budget Actual Variance Investment Income $ 400,000 $ 623,865 $ 223,865 Miscellaneous Charges to Other funds Charges to Water for administrative expenses 764,600 764,600 - Economic Development 390,000 390,000 Emergency Telephone System 126,000 126,000 - Community Development Block Grant 782,834 900,572 117,738 HOME 32,700 32,700 - Sewer 413,800 413,800 - Motor Vehicle parking System 85,300 85,300 - Sherman Garage 42,000 42,000 - Total Charges to Other funds 2,637,234 2,754,972 117,738 Miscellaneous Other Revenues payments in lieu of taxes 27,000 - (27,000) Sales and rentals of property 70,000 73,085 3,085 Compensation for damage to City property 33,000 49,347 16,347 parking permits - Ryan field 12,000 16,323 4,323 Miscellaneous 331,673 105,183 (226,490) Total Other Revenues 473,673 243,938 (229,735) Total Miscellaneous 3,110,907 2,998,910 (111,997) Total Revenues $ 81,162,869 $ 86,349,309 $ 5,186,440 Concluded - 110 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) Year ended February 29, 2008 General Management and Support City Council City Manager City Clerk Law Department Human Resources Finance Facilities management Miscellaneous operating requirements Total General Management and Support Public Safely Police Fire Total Public Safety Public Works Municipal service center Public Works Director City Engineer Traffic Engineer Streets Sanitation Total Public Works Original Final Budget Budget Actual Variance $ 418,000 $ 418,000 $ 400,828 $ 17,172 3,893,582 3,893,582 3,622,076 271,506 186,200 186,200 186,997 (797) 781,400 781,400 738,624 42,776 1,771,200 1,771,200 2,438,911 (667,711) 6,597,900 8,347,900 7,494,114 853,786 - - (2,334) 2,334 - - 500,338 (500,338) 13,648, 282 15,398,282 15, 379,554 18,728 19,557,063 19,632,063 20,574,784 (942,721) 11,448,800 11,448,800 11,880,970 (432,170) 31,005,863 31,080,863 32A55,754 (1,374,891) 415,150 415,150 364,353 50,797 284,100 284,100 309,528 (25,428) 1,577,000 1,577,000 1,519,354 57,646 2,943,700 2.943,700 2,839,250 104,450 3,980,325 4,242,825 4,542,645 (299,820) 6,831,542 6,831,542 6,643,183 188,359 16,031,817 16,294,317 16,218,313 76,004 Continued CITY OF EVANSTON, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Year ended February 29, 2008 Health and Hunan Resource Development I lealth and I luman Services Director Health Department Emergency assistance services Mental health and community purchased services Commission on Aging Subsidized Taxicab Program Human Relations Total Health and Human Resource Development Recreation and Cultual Opportunities Library Recreation Parks and forestry Ecology Center Arts Council Total Recreation and Cultural Opportunities Housing and Economic Development Community Development administration Planning and coning Housing rehabilitation and properly standards Building code compliance Total Housing and Economic Development Total Expendinnes Original Final Budget Budget Actual Variance $ 304,900 $ 304,900 $ 330,463 $ (25,563) 1,772,900 1,772,900 2,105,464 (332,564) 372,500 372,500 324,912 47,588 1,066,400 1,066,400 1,063,897 2,503 150,800 150,800 150,060 740 295,000 295,000 206,287 88,713 - - 46 (46) 3,962,500 3,962,500 4,181,129 (218,629) 4,854,700 4,854,700 4,928,060 (73,360) 8,026,000 8,026,000 7,849,587 176,413 4,009,900 4,009,900 4,050,320 (40,420) 519,500 519,500 485,712 33,788 1,006,900 1,006,900 915,021 91,879 18,417,000 18,417,000 18,228,700 188,300 247,610 247,610 262,728 (15,118) 490,900 490,900 510,392 (19,492) 883,900 883,900 957,770 (73,870) 1,830,090 1,830,090 1,755,785 74,305 3,452,500 3,452,500 3,486,675 (34,175) $ 86,517,962 $ 89,605,462 $ 89,950,125 $ (1,344,663) 112 - Concluded CITY OF EVANSTON, ILLINOIS Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year ended February 29, 2008 Revenues Intergovernmental allotments Interest Miscellaneous Total Revenues Expenditures Public Works Excess (Deficiency) of Revenues over (under) Expenditures Other Financing (Uses) Operating transfers (out) General Fund Net Change in Fund Balance Fund Balances Beginning of year End of year - 113 - Original and Final Budget $ 2,100,000 55,000 2,155,000 1,880,000 275,000 (772,500) $ (497,500) Actual $ 2,100,039 82,821 975 2,183,835 1,844,558 339,277 (772,500) Variance 39 27,821 975 28,835 35,442 64,277 (433,223) $ 64,277 1,947,208 $ 1,513,985 CITY OF EVANSTON, ILLINOIS Economic Development Fund Schedule of Revenues, Expenditures, and Changes in Pund Balance - Budget and Actual (Budgetary Basis) Year ended February 29, 2008 Revenues Hotel taxes Amusement taxes Interest Total Revenue Expenditures Housing and economic development Excess of Revenues over Expenditures Other Financing Sources (Uses) Operating transfers in (out) Maple Avenue Garage l'und Net Change in Fund Balance Fund Balances Beginning of year End of year 114 - Original and Final Budget $ 1,200,000 300,000 1,500,000 1,119,200 380,800 (650,000) $ (269,200) Actual $ 1,538,039 280,732 72,356 1,891,127 1,037,237 853,890 (650,000) Variance 338,039 (19,268) 72,356 391.127 81,963 473,090 2w,890 $ 473,090 1,294,343 $ 1,498,233 CITY OF EVANSTON, ILLINOIS Emergency Telephone System Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year ended February 29, 2008 Revenues Enhanced 911 surcharge Interest Miscellaneous Total Revenue Expenditures Public Safety Net Change in Fund Balance Fund Balance Beginning of year End of year 115 - Original and Final Budget $ 1,085,000 15,000 1,100,000 2,257,800 $ (1,157,800) Actual $ 1,221,274 94,936 19 1,316,229 954,141 Variance $ 136,274 79,936 19 216,229 1,303,659 362,088 $ 1,519,888 2,098,094 $ 2,460,182 CITY OF EVANSTON, ILLINOIS Affordable housing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year ended February 29, 2008 Revenues Interest Miscellaneous Total Revenue Expenditures Housing and economic development Excess (Deficiency) of Revenues over (under) Expenditures Other Financing (Uses) Transfers in (out) Mayor's Special Housing General Fund Net Change in Fund Balance Fund Balance Beginning of year End of year 116- Original and Final Budget $ 10,000 30,000 40,000 30,000 (31,800) $ (21,800) Actual Variance $ 16,894 $ 6,894 384,341 354,341 401,235 361,235 47,564 (17,564) 353,671 343,671 1,558,431 1,558,431 (31,800) - 1,880,302 $ 1,902,102 130,000 CITY OF i VANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year ended February 29, 2008 Original and Final Budget Actual Revenues Intergovernmental allotments Grant from the U.S. Department of Housing and Urban Development Miscellaneous Total Revenues Expenditures Housing and economic development Excess (Deficiency) of Revenues over (under) Expenditures Other Financing (Uses) Transfers W. Evanston Washington Nall Community Development Loan Net Change in Fund Balance Fund Balance Beginning of year End of year 117 - $ 2,014,710 $ 2,043,852 - 424,972 2,014,710 2,468,824 2,014,710 2,146,429 322,395 9,995 15,565 62,045 87,605 Variance $ 29,142 424,972 454,114 (131,719) 322,395 9,995 15,565 62,045 87,605 $ - 410,000 $ 384,440 12,799 $ 422,799 CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) Year ended February 29, 2008 Original and Final Budget Actual Variance Administration/Planning CDBG Administration $ 306,000 $ 316,799 $ (10,799) Fair Housing Assistance 70,000 69,984 16 Total Administration/Planning 376,000 386,783 (10,783) Economic Development Evanston Community Development Corp. 55,286 50,677 4,609 Neighborhood Fagade Program 25,000 29,058 (4,058) MBE/Small Business Assistance 61,814 61,812 2 Total Economic Development 142,100 141,547 553 Housing Adaptive Devices 10,000 2,954 7,046 Community Development Administration 108,500 - 108,500 Demolition/Vacant Lot Cleanup Program - 19,119 (19.119) Handyman Services 12,000 - 12,000 Housing Code Compliance 300,000 300,000 - Housing Rehabilitation Administration 150,000 258,492 (108,492) Minor Repairs/Painting Assistance - E.N.A.W. 150,000 133,016 16,984 Total I lousing 730,500 713,581 16,919 Continued - 118 - CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Year ended February 29, 2008 Neighborhood Revitalization Accessible Curb Ramp Program Alley Paving Program Black American Heritage and Tech Center Child Care Center Building Curb/Sidewalk Replacement Custer Street Improvements Family Focus Center Improvements Handyman Assistance/Elderly Home Repair Perry Park Renovation Restoration 1817 Church South Evanston Neighborhood Security Special Assessunents / Alley Paving YMCA Elevator Rehab YWCA Shelter Project Total Neighborhood Revitalization 119 - Original and Final Budget $ 50,000 $ 75,000 18,500 65,000 5,000 30,000 100,000 10,000 40,000 35,000 16,000 444,500 Actual 71,936 91,714 2,305 78,834 4,372 13,297 100,000 10,294 77,673 16,000 466,425 $ Variance (21,936) (16,714) (2,305) 18,500 (13,834) 628 30,000 (13,297) 10,000 (10,294) (37,673) 35,000 (21,925) Continued CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Year ended February 29, 2008 Public Services Adopt a Fancy Can Blue I-leron Theatre Community Unity I Evanston Community Defender Evanston Legal Services CCLAF First Base Homeless Girls Scouts Studio B Graffiti Removal Program Interfaith Housing Program Legacy Project Shorefron Meals at I -Ionic Music Institute North Shore Senior Center Open Studio Ail Preschool Playground Second Baptist Senior Crime Prevention Shorefront NFP Legacy Project Smith Park Renovations Summer Youth YAM Annual College Retreat Youth Job Center of Evanston YWCA Shelter Project Total Public Services 'total Expenditures 120 - $ Original and Final Budget 4,022 2,500 4,000 49,850 8,973 4,000 4,000 27,000 13,000 8,400 8,250 1,496 23,769 3,150 15,000 43,400 10,400 55,400 35,000 321,610 Actual 4,517 4,000 49,850 8,973 4,000 4,000 26,988 13,000 8,250 1,496 23,769 3,150 18,500 10,400 15,000 8,400 100,000 43,400 55,400 35,000 438,093 Variance (495) 2,500 12 8,400 (18,500) (10,400) (8,400) (100,000) 10,400 (116,483) $ 2,014,710 $ 2,146,429 $ (131,719) Concluded This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Special Service District No. 4 Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year ended February 29, 2008 Revenues Property taxes Current year levy Prior year levy Interest Total Revenues Expenditures I Iousing and economic development Net Change in Fund Balance Fund Balance Beginning of year End of year 121 - Original and Final Budget Actual Variance $ 453,900 $ 453,900 $ - (18,280) (18,280) - 501 501 453,900 436,121 (17,779) 245,000 245,000 $ 208,900 191,121 $ (17,779) 228,921 $ 420,042 CITY OF EVANSTON, ILLINOIS Township - Town Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year February 29, 2008 and March 31, 2007 for City and Township respectively Revenues Property taxes Interest Replacement tax Total Revenues Expenditmcs General management and support Excess of Revenues over Expenditures Other Financing (Uses) Operating transfers (out) General Assistance fund Net Change in Fund Balance Fund Balance Beginning of year End of year -122- Original and Final Budget $ 352,139 8,000 55,000 415,139 237,443 177,696 (125,000) $ 52,696 Actual $ 344,302 17,817 59,805 421,924 257,251 164,673 (125,000) Variance (7,837) 9,817 4,805 6,785 (19,808) (13,023) 39,673 $ (13,023) 412,477 $ 452,150 CITY OF EVANSTON, ILLINOIS Township - General Assistance Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year February 29, 2008 and March 31, 2007 for City and Township respectively Original and Final Budget Actual Revenues Property taxes $ 939,038 $ 908,797 Interest 8,000 23,010 SSI reimbursement 5,000 18,853 Emergency assistance reimbursement 124,683 46,695 Total Revenues 1,076,721 997,355 Expenditures General management and support 1,123,403 855,035 (Deficiency) of Revenues (under) Expenditures (46,682) 142,320 Other I'inancing Sources Transfers in Town Fund 125,000 125,000 Net Change in Fund Balance Fund Balance Beginning of year End of year -123- Variance (30,241) 15,010 13,853 (77,988) (79,366) (268,368) 189,002 $ 78,318 267,320 $ 189,002 541,516 $ 808,836 CITY OF EVANSTON, ILLINOIS Debt Service Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual (Budgetary Basis) Yeas handed February 29, 2008 Revenues I -axes Property taxes Current year levy, net Prior year levy, net Investment income Miscellaneous 'Ibtal Revenues I-xpendnures General management and support Health and human resources development Debt Service Principal Interest Fiscal agent fees 'Total Ispcnditures Excess (Deficiency) of Revenues over(under) Expenditures Other Financing Sources (Uses) Operating transfers in (out) Bond Proceeds Escrow Funding Premiums and discounts General Economise Development Special Assessment Maple Avenue Garage Sheunan Garage Net Changes in Fund Balances Fund Balances Beginning of year 1-nd of year Special Central General Service District Business fax Obligation Debt No 5 Increment District Original Original Original and Penal and Final and Foal Budget Actual Budget Actual 1311d,el Actual Southwest fax Increment District Original and Final Budnt Actual $ 9,052,609 $ 9,064,480 $ 439,000 $ 438,806 $ 9500,000 $ 8,192866 $ 600,000 S 597,858 - (19,546) - (18,607) - 57,589 - 225,000 185,039 400 6,654 120,000 373,037 10,000 19,497 - 17,478 - - - - - - 9,277,609 9,247,451 439,400 426,953 9,620,000 8,630,492 610,000 617355 3,000 124,645 500 - 335,000 6,491 - 2363 - - - - 600,000 - 800,000 800,000 5,080,000 5,729,341 295,000 295,000 3,500,000 3,400,000 65,000 65,000 4,637,643 4,237,920 143,063 143,063 364,000 106,580 4,635 4631 190,000 29,369 - - 40,000 12,154 - - 9,910,643 10,121,275 438,563 439,063 4,839,000 3,525215 869,635 871,994 (633,034) (873,824) 837 (II 210) 4,791,000 5,105,277 (259,635) (254,639) - 15,360,000 _ _ _ _ - (15,590,051) - - - - - - - 708,025 - - - - - - 127,320 127,400 - - (325,000) (325,000) (23,000) (23,000) 419215 419,215 - - - - (4,600,000) (C600,000) - - - - - - 0,872,829) (1,872,929) - - 546,535 1,024,589 - - (6,797,829) (6,797,929) (23,000) (23,000) $ (86,499) 150,765 $ 837 (11,210) $(2,016,829) (1,092,552) $ (282,635) (277,639) 1,022,894 25,201 $ 1,173,659 $ 13,991 124 - 2,029,747 339,925 337,195 $ 62,286 waslunglOn I-loward Ilan trey lax National Fax Iloward Ridge lax West l-Vanston fax Increment District Increment District Increment Dislucl Increment District Totals Original Original Original Ouemsl OF emal and Penal and Puxtl and Final and Penal and Final Budect Actual 13udect Actual 13udect Actual 13udeel Actual Budget Actual $ 1,250,000 $ 1,157,311 $ 1,700,000 $ 2,308,133 $ 110,200 $ 103,815 $ 50,000 $ 39,037 $ 22,701,809 $ 21,909,306 - - - 36,667 - 3,548 - 362 - 60,013 40,000 157,313 70,000 232,859 - 7,903 - 91 465,400 982,393 - - - - - - - - 17,478 1,290,000 1,314,624 1,770,000 2,577,659 110,200 115,266 50,000 39,490 21,167,209 22969,190 - 113 50,000 719 15,450 719 15,450 26,003 419,400 161,043 - - - - - - - - 1,400,000 800,000 450,000 475,000 220,000 220,000 - - - - 9,61 ONO 10,184,341 247,095 223,320 16U78 160,878 - - - - 5,557,314 4,876,392 - - 120,000 - - - - - 350,000 41,523 697,095 698,433 550,878 381,597 15,450 719 15,450 26,003 17,336,714 10,063,299 592,905 616,191 1,219,122 2,196,062 94,750 114,547 34,550 13,497 5,930,495 6,905,891 _ - - _ _ _ _ 15,360,000 - - - - - - - - - (15,590,051) - - - - - - - - - 708,025 (135,000) (135,000) (144,900) (144,800) (114,793) (114,793) - - (615,273) (615,193) (9,995) - (9,995) 419215 419,215 - - - - - - - - (4,600,000) (4,600,000) - - (500,000) (515,565) - - - - (2,372,829) (2,388,394) (135,000) (135,000) (644,800) (660,365) (114,793) (114,793) - (9,995) (7,108,887) (6,716,393) $ 457,905 481,191 $ 574,322 1,535,697 $ (20,043) (246) $ 34,550 3,492 $ (1,338,392) 189,498 2,327,671 4.273,766 160,030 6,550 10,185,784 $ 2,809,862 $ 5,809,463 $ 159,784 $ 10,042 $ 10,375 282 125 - 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PROPRIETARY FUND TYPES CITY OF EVANSTON, ILLINOIS Nunmajor Proprietary Funds Statement of Net Assets February 29, 2008 Assets Current Assets Business -type Activities - Enterprise Fund Total Maple Motor Vehicle Nonmajor Avenue Parking Proprietary Garage System Funds Cash and equivalents $ 5,159,508 $ 1,406,883 $ 6,566,391 Investments 1,000,000 - 1,()00,000 Receivables Aaxued interest 10397 - 10397 Other 1,165 7,459 8,624 Total Cur rent Assets 6,171.070 1,414342 7,585Al2 Noncurrent Assets Capital Assets Land - 2.742,522 2,742,522 Capital assets being depreciated 27,623,959 U59.511 36,883,470 Less accumulated depreciation (4,935,833) (2,992,193) (7.928,016) Total Noncurrent Assets 22,688.126 9,009,850 31.697,976 Other Assets Receivables Notes - 264,000 264,000 Total Assets 28,959.196 10,688,192 39,547,388 126- Liabilities Current Liabilities (Payable from Current Assets) Vouchers payable Interest payable Compensated absences payable General obligation bonds payable Unamortired bond expenses and discount Due to other funds Total Current Liabilities (Payable from Current Assets) Long -Term Liabilities OPEB Liability General obligation bonds payable Total Long -'term Liabilities 'Total Liabilities Nut Assets Invested in capital assets, net of related debt Unrestricted Total net assets Business -type Activities - Enterprise Fund Total Maple Motor Vehicle Nonmajor Avenue parking Proprietary Garage System Funds $ 32,680 $ 54,564 $ 87,244 - 33,166 33,166 - 81.324 81324 4,000,000 675,000 4,675,000 (4,060) - (4,060) 183.841 20.516 204,357 4,211461 86C570 5.077,031 - 4,537 4,537 - 1,825,000 1,825,000 - L829.537 1,829,537 4.212,461 2,694,107 6,906,568 18,692,186 6509,850 25,202,06 5,954,549 1,484,235 7,438.784 24,646,735 $ 7,994,085 $ 32,640,820 127- This page has been intentionally left blank. CITY Or EVANSTON, ILLINOIS Nonmajor Proprietary Funds Combining- Statement of Revenues, Expenses, and Changes in Fund Net Assets Year ended February 29, 2008 Operating Revenues Charges for services Miscellaneous Total Operating Revenues Operating Expenses Excluding Depreciation Administration Operations Total Operating Expenses Pxcluding Depreciation Operating Income (Loss) Before Depreciation Depreciation Operating- Income (Loss) Nonoperating Revenucs(Expenses) Investment income Interest expense Bond expenses and amortization of discount Total Nonoperating Revenues (Expenses) Income (I oss) Before fansfers and Connibutions Capital Contribution Transfers In (Out) General Fund Central Business Tax Inciemcnt District fund Economic Development Fund Change in Net Assets "Total Net Assets - Beginning of Year Total Net Assets - Fad of Ycar Business -type Activities -Enterprise Fund Maple 'Total Avenue Motor Vehicle Nonmajor Garage Parking Proprietary Fund System Funds $ 1.429,538 $ 3,031,075 $ 4,460,613 162 52,092 52.854 1.429,700 3.093.767 4,513,407 514963 1.710,320 1.500,134 1,710320 2.01507 (280,620) 1,068,670 702,971 185,923 (983,591) 882847 227,709 94;759 (262,833) (202,094) (6,316) (41,440) (107,325) (1,025,031) 775,522 495.286 - (43,000) (517,200) 4,600,000 - 650,000 - 4,677,255 258.322 19,969A80 7,735.763 $ 24,646.735 $ 7,994.085 128 - $ 514,963 3,210.454 3,725,417 788,050 888.794 (100.744) 322,468 (464,917) (6,316) (149,765) (249,509) 495,286 (56000) 4,600,000 650,000 4.935,577 27.705,243 32.640,820 CITY OF EVANSTON, ILLINOIS Nonmalor ProprietaryFunds Statement of Cash flows Year ended February 29, 2008 Cash Flows from Operating Activities Receipts bran customers and users Receipts from unerfand services provided Payments to suppliers Payments to employees Payments for nhei fund services provided Net Cash Provided by (Used for) Operating Activities Cash Flows from Noncapnal Financing Activities Transfeis In (Glut) General Find Central Business Taz Increment District fund Economic Development Fund Net Cash Provided by Noncapilal Financing Activities Cash Plows from Capital and Related Financing Activities Acquisition and construction of capital assets Principal paid on general obligation bonds Interest paid on general obligation bonds Net Cash (Used for) Capital and Related Financing Activities Cash Plows from Investing Activities Interest income Net Cash Provided by Investing Activities Net Increase (Decrease) in Cash and 13quivalenls Cash and Bquivalcnts Beginning of year End of year Reconciliation Cash and equivalents Urn esh icled 129 - Business -type Activities-Enlena se Fund Maple Total Avenue Motor Vehicle Nonmajoi Garage Paikmg Proprietary Fund System Funds $ 1,438,073 $ 3.082,758 $ 4,520,831 5,500 - 5,500 (1,791,550) (1,512,308) (3,303,858) (1314) (512207) (520,921) 175,327 8.218 183,545 (174,364) 1,059,461 885,097 (43,000) (517200) (560,200) 4,600,000 - 4,600,000 650,000 - 650,000 5207,000 (517,200) 4,689,800 - (503,928) (503,928) (3,900,000) (630,000) (4,530,000) (262,833) (202,084) (464,917) (4,162,833) (1,336.012) (5,498.845) 227,709 94,759 322,468 227.709 94.759 322,468 1,097,512 (698,992) 398,520 5,061,996 2,105,875 7,167,871 $ 6,159,508 $ 1,406,883 $ 7,566,391 $ 6,159,508 $ 1,406,883 $ 7,566,391 $ 6,159.508 $ IAW883 $ T566,391 CITY OF EVANSTON, ILLINOIS Nonmalor Proprietary funds Statement of Cash Plows - Continued Year ended February 29, 2008 Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities Operating income (loss) Depeciahon Changes in assets and liabilities Other receivables Notes recervable Interfund receivable Accrued interest receivable Compensated absences Accrued payroll Interfund payable Vouchers payable 01813 liability payable Interest payable Net Cash Provided by (Used for) Operating Activities -130- Business -hype Activities-EnterDrisc Fund Maple 'Ibtal Avenue Motor Vehicle Nonmalor Garage Parking Proprietary Fund System funds $ (983,591) $ 882,847 $ (100,744) 702,971 185,823 888,794 (1,166) (6,009) (7,175) - 5,000 5,000 5,500 - 5,500 9,539 - 9,539 (1,714) 10,191 8,477 - (18,972) (18,972) 175,327 8,218 183,545 (81,230) (4,018) (85,248) - 4,537 4,537 - (8,156) (8,156) $ (174,364) $ 1,059,461 $ 885,097 CITY OF FVANSTON, ILLINOIS Water Fund Schedule of Net Assets February 29, 2008 Assets Current Assets Cash and equivalents Receivables Accounts - billed Accounts - unbdled Other Receivables Accrued interest Inventory Total Current Assets Noncurrent Assets Restricted cash and equivalents and investments Capital Assets Land Consnuclion in progress Capital assets being depreciated Less accumulated depreciation Total Capital Assets Total Assets Resh'icted Accounts Operation and Bond Depreciation Maintenance and Bond Improvement Account Interest Reserve and Extension Totals $ 2,150,903 $ 950,332 $ 2,710,348 $ 2,484.580 $ 8,302,163 861,425 - - - 861,425 856,067 - - - 856.067 - - - 20,419 20,419 - - 26,051 - 26.051 633.008 - - - 633.009 4,501.403 950,332 2.742.399 2,504,999 10,699,133 668-942 620,912 948.116 2,237,970 555,415 - - - 555,415 83,235 - - 3,383,123 3,466,358 63,200,114 - - - 63,200,114 (I6,856A 57) - - - (16,856,157) 46.982.607 - - 3383A23 50,365,730 $ 5L484,010 $ L619.274 $ 3.363.311 $ 6.836,238 $ 63,302.833 -131- CITY OF EVANSTON, ILLINOIS Water Fund Schedule of Net Assets February 29.2008 Liabilities and Net Assets Current Liabilities Voucheis payable Vouches payable - ecso icted hnecst payable - tesnietcd Revenue bonds payable Revenue bonds payable - restricted Duc to other funds Compensated absences payable 'total Curent Liabilities Lon.— 'Penn Liabilities Revenue bonds payable 011113 liabilty Unanuntited bond discount on bonds payable 7'otal Long -'term Liabilities 'Total Liabilities Net Assets Invested in capital assets, net of iclated debt Resn icted for debt service Restricted for Capital haprovements Unrestricted Total Net Assets `total Liabilities and Net Assets I Operation and Maintenance Account 27L394 $ 425.000 146.851 465,685 1.308 930 2,245,000 19 327 15,806 2.280.133 3.589.063 Restricted Accounts Bond Depreciation and Bond Improvement Interest Reserve and Extension 18.485 85,000 103.485 103,485 Totals $ 248,714 $ 520,108 148,116 148,116 - 18.485 425,000 85.000 L227 148,078 465.685 48019,925 - - - 565,457 620,912 (124,978) 950,332 2,742,399 47,894,947 L515,789 3,363,311 $ 51.484,010 $ 1,61U74 $ 3.363,311 $ 132 - 398,057 1,810A72 398.057 2,245,000 19,327 15.806 2,280,133 4.090.605 3,383,123 51,403,048 - 1,180.369 800,000 800,000 2.255.058 5.822,811 6,438,181 59.212.228 6.836.238 $ 63.302.833 CITY OF EVANSTON, ILLINOIS Water Fund Schedule of Changes in Net Assets - Reserved - Restricted Accounts Year ended February 29, 2008 Increases Intrafund transfers in - accordance with bond ordinance unreserved retained earnings - Operation and Maintenance Transfer Investment earnings Total Increases Decreases Bond principal Bond interest Purchase of capital assets Transfer to Insurance Fund Payment of expense Total Decreases Net Increase (Decrease) Net Assets Beginning of year End of year Bond Depreciation, and Bond Improvement Interest Reserve and Extension Totals $ - $ - $ 2,435,500 $ 2,435,500 2,000,000 2,000,000 92,421 160,515 132,259 385,195 92,421 160,515 4,567,759 4,820,695 489,167 - 489,167 125,746 - - 125,746 - - 209,150 209,150 - - 2,000,000 2,000,000 2,048 120 50,913 53,081 616.961 120 2,260,063 2,877,144 (524,540) 160,395 2,307,696 1,943,551 2,040,329 3,202,916 4,130,485 9,373,710 $ 1,515,789 $ 3,363,311 $ 6,438,181 $ 11,317,281 -133- CITY OF EVANSTON, ILLINOIS Water Fund - Operation and Maintenance Account Schedule of Revenues, Expenses, and Changes in Unreserved Net Assets - Budget and Actual Year ended February 29, 2008 With Comparative Totals for the Year Ended February 29, 2007) Operating Revenues Charges for services Miscellaneous Total Operating Revenues Operating Expenses Excluding Depreciation Administration Operations Pumping Filtration Meter maintenance Distribution Other 'folal Operating Expenses Excluding Depreciation Operating Income Before Dcpeciation Depreciation Operating Income Nonopctating Revenues (Expenses) Investment income Interest expense Bond expenses and amortization of discount Net book value of capital assets disposed Total Nonoperating Revenues (Expenses) Income Bef'oie'Ci anstets Transfers hr (Out) '17ans1er In Transfer Out Total Transfers In (Out) Net Income Other Changes in Unreserved Net Assets Inuafund transfers in (out) - net assets - reserved - restricted accounts Increase in Unreserved Net Assets Unreserved Net Assets Beginning of year lied of year 134 - Prior Year Budget Actual Actual 13,158,800 $ 12,791,917 $ 12; 194;340 339A00 446,705 444.803 13,49&200 13,238,622 12.639,143 782,100 668.969 642,519 2,264,900 2,130;547 1,864,554 2;053,200 1,798,666 1784,406 328,400 313,627 301,278 1,406,100 1,236,655 11280,427 868,600 936.SI1 908,744 7.703,300 7,084.975 6,781.927 5,794,900 6; 153;647 5,857,216 - 1,405.617 1,384,583 5,794,900 4.748.030 4A72,6.33 50,000 163,197 189,392 - (125,746) (142,359) - 1,129 1,129 - - (4,684) 50,000 38580 43,478 5.844900 4.786,610 4.516,111 - 2,000,000 2,000,000 (2,693,600) (4.693,600) (4,693,600) (2.693,600) (2,693,600) (2,693,600) $ U51,300 2,093,010 1,822,511 (1.611.437) 1.325,647 481,573 3,148,158 47AI3.374 44.265,216 S 47.894,947 $ 47,413,374 This page has been intentionally left blank. CITY OF 1 VANSTON, ILLINOIS Water Fund - Operation and Maintenance Account Schedule of Operating Revenues - Budget and Actual Year ended February 29, 2008 (With Comparative Totals for the Year Ended February 28, 2007) Charges for Services, Net Water Sales Evanston Skokie Northwest Water Commission Total Charges for Services Miscellaneous Fees and outside work Fees, merchandise and other Total Miscellaneous Total Operating Revenues Prior Year Budget Actual Actual $ 6,263,900 $ 6,012,643 $ 5,804,517 3,175,300 3,158,396 2,891,834 3,719,600 3,620,878 3,497,989 13,158,800 12,791,917 12,194,340 80,000 97,437 92,618 259,400 349,268 352,185 339,400 446,705 444,803 $ 13,498,200 $ 13,238,622 $ 12,639,143 135 - This page has been intentionally left blank, Internal Service Funds Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. Flect Services Fund - to account for the costs of operating the municipal service center maintenance facility for transportation equipment used by other City departments. Such costs are billed to the user departments at actual cost. Actual costs include depreciation on the transportation equipment. Insurance Fund - to account for the costs of adminstering general liability claims and workers' compensation programs. Such costs are billed to the General Fund. CITY Or LVANSTON, ILLINOIS Internal Service Funds Statement of Net Assets February 29, 2008 Flect Services Insurance Totals Assets Current Assets Cash and equivalents $ 441,760 $ 360,022 $ 801,782 Investments 1,057,590 5,871,041 6,928,631 Receivables - other 27,299 - 27,299 Inventories 373,030 - 373,030 Total Unrestricted Current Assets 1,899,679 6,231,063 8,130,742 Capital Assets Cost 19,968,930 - 19,968,930 Accumulated depreciation (14,269,777) - (14,269,777) Total Capital Assets 5,699,153 - 5,699,153 Total Assets 7,598,832 6,231,063 13,829,895 Liabilities and Fund Equity Current Liabilities Vouchers payable 256,878 22,246 279,124 Compensated absences payable 101,620 - 101,620 Claims payable - 3,349,952 3,349,952 Due to other funds 41,048 1,066 42,114 Total Current Liabilities 399,546 3,373,264 3,772,810 Long -'Perm Liabilities OPEI3 Liability 5,883 - 5,883 Claims payable - 3,278,500 3,278,500 Total Long -Term Liabilities 5,883 3,278,500 3,284,383 Total Liabilities 405,429 6,651,764 7,057,193 Net Assets (Deficit) Invested in capital assets, net of related debt 5,699,153 - 5,699,153 Unrestricted 1,494,249 (420,700) 1,073,549 Total net assets (deficit) $ 7,193,402 $ (420,700) $ 6,772,702 136 - CITY OF EVANSTON, ILLINOIS Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Assets Year ended February 29, 2008 Fleet Services Insurance Totals Operating Revenues Charges for Services General Fund $ 4,317,800 $ 1,900,000 $ 6,217,800 Sewer Fund 258,600 - 258,600 Water Fund 331,200 331,200 Motor Vehicle Parking System Fund 111,800 - 111,800 Miscellaneous 10,814 11,079 21,893 Total Operating Revenues 5,030,214 1,911,079 6,941 _93 Operating Expenses General support 368,314 - 368,314 Major maintenance 3,173,189 3,173,189 Vehicle body maintenance 13,042 - 13,042 General liability claims - 1,887,569 1,887,569 Workers compensation claims - 1,217,019 1,217,019 Other 852,784 852,784 Total Operating Expenses 3,554,545 3,957,372 7,511,917 Operating Income (Loss) Before Depreciation 1,475,669 (2,046,293) (570,624) Depreciation 1,397,026 - 1,397,026 Operating Income (Loss) 78,643 (2,046,293) (1,967,650) Nonoperating Revenues (Expenses) Investment income 7,590 243,166 250,756 Gain (loss) on disposition of assets 16,401 - 16,401 Total Nonoperating Revenues (Expenses) 23,991 243,166 267,157 Income (Loss) before Operating Transfers 102,634 (1,803,127) (1,700,493) Transfers In (Out) Water Fund - 2,000,000 2,000,000 Change in Net Assets 102,634 196,873 299,507 Total Net Assets (Deficit) - Beginning of Year 7,090,768 (617,573) 6,473,195 Total Net Assets (Deficit)- End of Year $ 7,193,402 $ (420,700) $ 6,772,702 Continued - 137 - CITY OF ; VANSTON, ILLINOIS Internal Service Funds Combining Statement of Cash Flows Year ended February 29, 2008 Fleet Services Insurance Totals Cash Flows from Operating Activities Receipts from customers and users $ 5,105,516 $ 1,956,004 $ 7,061,520 Receipts from interfund services provided 125,664 271 125,935 Payments to suppliers (3,194,290) (1,832,211) (5,026,501) Payments to employers (371,584) (1,218,408) (1,589,992) Net Cash Provided By Operating Activities 1,665,306 (1,094,344) 570,962 Cash Flows from Noncapital Financing Activities Transfers In (Out) Water Fund - 2,000,000 2,000,000 Net Cash Provided by Noncapital Financing Activities - 2,000,000 2,000,000 Cash Flows from Capital and Related Financing Activities Sale of capital assets 16,401 - 16,401 Acquisition and construction of capital assets (300,429) - (300,429) Net Cash Used for Capital and Related Financing Activities (284,028) - (284,028) Cash Flows from Investing Activities Purchase of investments (1,057,590) (1,043,166) (2,100,756) Interest income 7,590 243,166 250,756 Net Cash used for Investing Activities (1,050,000) (800,000) (1,850,000) Net Increase in Cash and Equivalents 331,278 105,656 436,934 Cash and Equivalents Beginning of year 110,482 254,366 364,848 Bndofyear $ 441,760 $ 360,022 $ 801,782 Continued 138 - CITY OF EVANSTON, ILLINOIS Combining Statement of Cash Flows - Continued Internal Service Funds Year ended February 29, 2008 Reconciliation of Operating Income to Net Cash Provided by (Used for) Operating Activities Operating Income Adjustments to reconcile operating income to net cash provided by (used for) operating activities Depreciation Changes in assets and liabilities Increase/decrease in A/R miscellaneous Other receivables Interfund receivable Inventories Compensated absences Accrued payroll OPEB Liability Accounts payable Vouchers payable Claims payable Net Cash Provided By (Used For) Operating Activities - 139 - Fleet Services Insurance Totals $ 78,643 $ (2,046,293) $ (1,967,650) 1,397,026 - 1,397,026 84,025 - 84,025 (8,723) 44,925 36,202 125,664 271 125,935 (18,072) - (18,072) 18,147 - 18,147 (27,300) (1,389) (28,689) 5,883 5,883 8,851 (24,110) (15,259) 1162 - 1,162 - 932,252 932,252 $ 1,665,306 $ (1,094,344) $ 570,962 This page has been intentionally left blank. AGENCY FUND This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Special Assessment Agency Fund Statement of changes of Assets and Liabilities Year Ending February 29, 2008 Assets Current Assets Cash and short term investments $ Total Assets $ Liabilities Due to special assessment bondholders $ Beginning of Year Additions Deletions 21,073 $ 21,073 $ 21,073 $ Total Liabilities $ 21,073 $ 140- End of Year $ 21,073 $ 21,073 $ $ 21,073 $ $ 21,073 This page has been intentionally left blank. STATISTICAL SECTION (UNAUDITED) This page has been intentionally left blank. Statistical Section This part of the Government's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Government's overall financial health. Contents Financial Trends These schedules contain trend information to help the reader understand how the Government's financial performance and well-being have changed over time. Page 141-144 Revenue Capacity 145-147 These schedules contain information to help the reader assess the Government's most significant local revenue source, the property tax. Debt Capacity 148-150 These schedules present information to help the reader assess the affordability of the Government's current levels of outstanding debt and the Government's ability to issue additional debt in the future. Demographic and Economic Information 151-152 These schedules offer demographic and economic indicators to help the reader understand the environment within the Government's financial activities take place. Operating Information 153-158 These schedules contain information about the Government's service and resources to help the reader understand how the Government's financial information relates to the services the Government provides and the activities it performs. Sources, Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The Government implemented Statement 34 in 2003, schedules presenting government -wide information include information beginning in that year. CITY OF EVANSTON, ILLINOIS Net Assets by Component Last five Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Governmental Activites Invested in Capital Assets, net of related debt Restricted Unrestricted Total Governmental Activities net assets Business -type Activities Invested in Capital Assets, net of related debt Restricted Unrestricted Total Business -type Activities net assets Primary Government Invested in Capital Assets, net of related debt Restricted Unrestricted Total Primary Governemnt net assets Note: A 'I en Year history is not vet available. Source: City Finance department Fiscal Year 2004 2005 2006 2007 2008 $ (9,753) $ 426 $ 34,428 $ 31,133 $ 31,952 33,415 32,811 31,169 30,034 23,168 32,861 43,010 15,408 25,171 27,821 $ 56,523 $ 76,247 $ 81,005 $ 86,338 $ 82,941 $ 103,339 $ 114,442 $ 129,084 $ 140,621 $ 159,185 11,158 11,274 10,449 9,374 1,986 23,332 21,478 23,483 21,417 23,589 $ 137,829 $ 147,194 $ 163,016 $ 171,412 $ 184,760 $ 93,586 $ 114,868 $ 163,512 $ 171,754 $ 191,137 44,573 44,085 41,618 39,408 25,154 56,193 64,488 38,891 46,588 51,410 $ 194,352 $ 223,441 $ 244,021 $ 257,750 $ 267,701 - 141 - C1'I'Y Of EVANS'ION, ILLINOIS Ch.rrrges rn No A<Scts Last Iba PISaal Yew, (accrual bnsrs of acconnong) (amoums capressed In thousands) M"al fear 1_001 2005 2006 2007 2008 tapen,e\ (iV„CI Ilnlfnitl Aet,tr General govcmment b 15,791 S 14451 S 19,537 S 19,951 S 20,072 PW,, Snfcty 39,237 31,168 45,95) 16,368 48,763 Publm\Yin As 13,005 14,225 14,632 16,505 21566 I Icalth &; Ilun,an 1(esource Devdopn,ern 5,370 5,943 4,781 6,108 4,982 110usrny& Economre Derdopmcnt 5,973 6,]5] 6,850 7,924 7,090 ('ultme.v,d l(ecutmm, 17,129 1 276 1?792 19,303 20,634 Interest on Lon -m'u Debt 490Q 5OR6 5874 6916 5.5" 9blal govemmental acovraex c... ... s 101 A65 95,806 117,417 12 085 128630 Busn es, -type ACOV10es Water 8,992 8,176 8760 8,]]8 c,ee8 Se", 8,964 .8,781 9,219 9,588 8,972 Motor velt,,k Parking system .3,468 4,777 2,904 2,963 2,403 Shern,nn garngc - - - 1,613 1,270 Maple avenue",a' 3,028 3.148 3,096 2910 2,682 I end lsrurneas-ry4x Ac0\maa 24452 24,882 23979 25,952 2G.9% Total plrmvy govcmnsm eapeuus S 125917 S 120(M b$ 1141396 S 147,937 S 155,625 1'rognun 12evenues Go\ cnnnental Aem nes Charges for Se ... ces General goven,mcm S 12,750 S 13,262 b 13,060 S 11.630 S 1=639 Ctdmre and R.rcab9n 3,739 1,731 4,310 4,353 4,521 Other aet,,' 6,799 9.253 10,293 tl ]]9 14,51S Operan, grw, and contnbulaons 3,490 3,713 3,441 3G79 5,982 Copnal (n:nns;md Centllbonm,s 1.459 212 _ _ 1,127 185 118 "Total go rTimenml:¢omacs pragrtm revenues 2%22] 301]I _. _1-211. ._. 30 G26 37778 13us,ness-b'pc acumees Charges for Sel vrccs Wme, 13,478 13,187 13,9el 12,639 13239 Saver 15,436 14913 16,0]] 14,304 14,239 Shin man gar age - - - ]]9 1950 Minor vch,elc parkrng,ystcm 3,266 3,011 2,965 3,059 3,084 Maple avenue garage fund 1263 1512 I.G?? 1417 1430 rotal l3usmess- Ope ad,,mes Program luwenmr< 31j43 32623 34,15 31288 33941 Itoel pnn,ap•gormnn,nnt program revenues S 616]0 S 62.794 b 66.856 S G?,o I4 $ 11 N9 Net (e,,.,e)hevenor Govemmcmal :,trvinc< (71238) (05,635) (85,18G) (91459) (ory852) Buwus,-type acOv4us 8991 ___]741 10640 _G,436 GBAS Total l'nnmp(io\emrnent-1eepen,e (64,^_47) (57,891) (71,510)--(85,023) (83,906) General 1(evenaes and Odtcr Change\ in Net A,vet, (iovc,nmemal Acnvae< 1.+a<a Properly taxes b 75,929 S ]9,]15 S 89,810 S 61,983 S 4(594] Sales m'e< 345 345 - 14,387 IgIT_ h"'t eat cannngs 1,710 1547 2997 3,752 3653 Mt,oellancons 2,096 ,19% 1,412 17,287 25,791, 1',arnfers 1_4_i31� �1 2441 li 2]]1 fGIGI 15 II6] ]5.]45 85,359 89,942 96,793 87,455 Punt Balance Apphed 'Total novel nnuvtA activ it, ]5,]45 95359 84942 %,793 8'/A55 Busrnee,typr adnmc, Invcnt.1110 carnmg< 143 380 896 1,344 1287 I mnsfcry 4335 _ 1�9_t ....... _-1,6_1 A17] GIG 5.110 TOM busa,evs-type amrvne< _ _. 4,08 5,173 060 6,403 Total..... gmrrn e"'t b 5�0;123 S 86,983 S 05,115 S--�_08,753 S 93,858 Changes in Net A,Os (3",...n,rntnl aotrvnres b 2,507 S 19,724 S 4,756 S 5334 b (1,397) Buaness-type"et"te< _ 13,669 9365 1581n 9.396 11149 "l oral prrn,a}omcr, nca S IG 1]G $ 29,089 $ 20,575 F .I3730 S ?'S1 %o',' ,lty Dnvme Aenanment Net, A re. l' , IUamn a nut, et.n.nL,ble 142- CITY OF EVANSTON, ILLINOIS Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) General Fund Reserved Unreserved Total flcneral fund All Other Govermnental Finds Reserved Unreserved, reported in Special revenue funds Capital Projects Funds Total all other m ernmemal finds Fiscal }car 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 S 965 S 745 S 3,104 S 2,820 S 4.614 S 4.665 S 7,948 $ 6,027 $ 1,327 S L108 7222 9,327 11341 12d38 13,110 14375 15209 18.804 24,866 24,840 $ 8.187 S M072 S 14A45 S 15,258 S 17,724 S 19,040 S 23,157 S 24.831 S 26, 193 S 25,948 $ 27,054 S 26,867 S 23.014 S 25,683 S 29,211 S 28,750 S 30,761 S 33.937 $ 31,741 $ 29339 4959 5,033 6371 7,507 60,514 4,617 5,249 5,171 5,587 6.649 13.564 14,494 27222 12,648 - 58 816 49A76 31,696 21965 25,620 S 45,577 S 46.394 S 56,607 S 4M38 S 89,725 S 92,183 S 85.486 S 70.804 $ 61,293 S 62,008 Note Fund balances for debt sm ice have been included in the reserved amounts Source: City Finance department 143- CITY OF EYiS$TOF, ILLINOIS Changes m Fund Balances, Governmental Funds Last Ten Fiscal Years pnodt6ed accrual bans ofaccounnngl (amouuls expressed ut thousands) Rt,erut, Tames Linenses, fees and Permns Pores and penalties Charges for se, aces Spcctal Assessments Intcruot ernmental Inn eshncnt Esnmes Other Re.cnu,s Total Roenues Expenditures General G.,,ruuem Pubhc Safety Pubhc R'orks Reacanon and cultural opponuonws licalth and Human De,lepinent liausmg and Ecanonvc Dn elopment Pcusuans Capnul Outla} Debt Se,, ice Interest Fiscal went fees Pnnnpal Total po,ernmemal an, nws e<pendrturc Net (cvpense)Ye erue Governmental acmanes Ocher linanemg50urees(uses) Proceeds from borrov.mc Pas mentrProceeds from refundmc Capnahzcd mtcrest income Capnahzed interest pen,e Proceeds sale "."M.,bther Reducaon m lone Iann debt Escro.. funning Tram . Transfers (out) Total Other financing sources (uses) Net Changes in Fund Balance Debt Sen me as a percentage of non<zprcal e.oendmucz Saur<e Cu, Financedepanutent Fiscal Pent Mg 2000 2001 200'- 2003 2004 2005 2006 2007 2008 S 56,n16 S 62,332 S 67,585 S 6S749 S 59,814 S 53331 S 66744 S 75,661 S 77,137 S 75,767 4,IS7 5,133 6.436 7,405 6,459 6.690 6,773 9,164 8,061 10,276 2331 2,625 ;782 3,242 3,742 M0 3.999 3,7Sl 4029 4,660 -998 4,860 5,491 5,515 6,262 5,90% 6.053 6,905 7,167 7)32 - - - - M 217 365 546 %5 520 5,640 7,259 5,449 5,859 1%116 18586 21618 21,106 21402 2,62S 2,204 2,477 339j 2458 1.55 1G50 1540 2,970 3,695 3,402 " 4399 4300 4976 6.859 6953 n.451 5,312 5573 5116 80,508 89,335 95,339 98,204 102,715 108,098 116,543 125,945 12,634 130,098 S,386 9,732 10,107 13,025 12,565 13,365 1{C•GG 15,601 14,539 IS,190 22,182 22.505 23,928 25,454 32093 33,896 36,323 39,094 39690 42,466 10,434 12,678 1_037 11,05 10,847 11.119 12,070 13,242 14,'82 18,863 10,590 11130 1^_,107 I3.02S 13,i12 14,287 15,493 16,526 16,683 19,118 4,]12 4.342 4,i44 4621 4,539 5,272 5,801 4.566 5,850 4,9S2 5.335 7,013 5.620 u293 5,652 5,852 6,7 17 6,646 7,633 7,089 8,515 S,537 5301 9277 4,209 2,6SS 1372 4,62E 5,645 - 4944 6.047 10464 16.337 13301 9941 IS208 42.087 IS aSb 12,416 4,-,67 4,529 4,770 4,339 4,846 5.163 5,027 5,S57 1,e27 5,123 359 323 517 42 7.421 6,18S 6,325 6,300 6585 9,385 i885 7,696 1153n 10,915 S, i88 93,101 9S.e03 110 S'_9 108,659 1 10098 123 021 15(260 142 332 139 114 (6,230) (i %6) (3,564) (1],6251 (5044) (2,900) (7,379) 130,115) (14,698) (9,016) S 7.184 $ 1,25l S 15314 S - S 57066 S 24,917 S .5,724 S 31,332 S 24,9i6 S 31444 - (32.2:) _ _ - - _ _ - - - - 773- - (773) - - (355) - 45 - ?IS 40 - - - - - _ (I001 - - - - (407---) (12,718) 1113SG) (6626) (14,36S) (15,590) 5,854 7,705 3,526 5,619 8.259 9,762 6,020 7.032 6,529 9,975 (33'_31 (<174) (1_210) (3893) t9572) (15.^_S71 115062) (14432) (10528 (15344) 0 v 15 7.605 1(G30 2.044 51,621 6,6)4 4 796 171.306 6,549 9,4SS S 3,435 S 3,640 S 13,066 S OUSI) S 45,577 S 3J74 S (2532) S (13009) S (8,149i S 469 143001 lz zs% 1255° 1132°a 11 99% 144Tx I221°o 1137o 149Vs 1253% 144 - CITY OF EVANSTON, ILLINOIS Assessed Value and Actual Value of Taxable Property Last Ten Fiscal Years Levy Total Taxable Total Total Year Residential Farm Commercial Industrial Raihoad Assessed Actual Tax Ended Property Propert`' Property Property Prooertv Value Value Rate 1997 702.987.666 16.895 396.349.777 79242479 317J86 1, 178.91403 3.536.743.809 2069 1998 789.833.544 16.895 413,956,877 90,809,247 293.665 L2949t0.228 3.884.730.684 1.888 1999 82L467.155 16.895 406,217,660 72.384.000 286.492 1,300372.202 3901.1I6.606 1.934 2000 828.097.184 16.895 390321.697 6T725.714 298.315 L286.459.805 3.859.379.415 2.033 2001 1,105269.184 16.895 459.256.602 50.985,114 311.382 L615.839,177 4,847,517.531 1628 2002 1,202.783,327 16.895 467,795.729 66.579.781 368,172 L737.543.904 5.212.631.712 1,609 2003 1,221.970,442 16.895 435.093,531 69.669.560 397A56 1,727,147.884 5,181,443.652 1.698 2004 1,543.464,139 16,895 479.999.412 7L684,555 446.570 2095.611.570 6.286.834.710 1.528 2005 L680.183.692 16.895 500,330.397 61.756.603 465.435 2241753.022 028.259.066 1491 2006 L707,669.215 16,895 476,821.737 60.920,888 464,011 1245.892,746 03T678.238 1527 Note* Property is reassessed once ever} three years. Property is assessed at 1/3 actual value. Tae rates are per $100 of assessed value Source- Cook County Assessors office -145- CITY Or EVANSTON, ILLINOIS Principal Properh. Tax Payers Current year and Nine Years Ago Tax Paver Golub & Compan} REP CBRE Rotary International Church Street Plaza Church & Chicago LTD Partnership Omni Ornngton Hotel Evanston Plaza Freed Evanston Hotel Assoc Albertson Propem Tar Rap Sum Properties LLC Total Total EAV Source Cook County Assessor's office 2007 (2006 EAV) 1998 (1997 EAV) Percentage Percentage Total of Total Cih Total of Total City Equalized Assessed Taxable Equalized Assessed Taxable Value (EAV 1 Rank EAV Tax Paaer Value (EAV) Rank EAV 22187,724 1 1 30% Rotary International 16,501,419 1 1 44% 21,716,555 2 097o Washington National 10,97(L919 2 096% 21,533,721 3 0 96% Davton Hudson 10,720.627 3 0 93°10 17,782,965 4 0 79% Home Depot 8,727,134 4 0 76% 14,786.152 5 0 66% 1800 Sherman Ave. 8,670,143 5 0 75% 13,76L924 6 061% The Sha%N Cc 8,33L189 6 0730; 13,373,273 7 060% Balcor Cc 7,816,871 7 068°0 12,251240 8 055% St Francis Hospital 7726,712 8 067% 9,461,347 9 0.42% Presbyterian Homes 7,716,255 9 0 67% 9327365 10 0 42% Orrington Hotel 6,812,743 10 0 59% 163,182266 727% 2,245,892,746 Total EAV 93,994,012 1,148,604,617 8 18% -146- CITY OF EVANSTON, ILLINOIS Property Tax Levies and Collections Last Ten Years Tax Taxes Levied Collected Receipts Collections Total Collected to Date Levy for the Percentage in Subsequent Percentage Year Fiscal Year Amount of Lew Years Amount of Lew 1998 S 23,757.032 S 23,221913 97.76% S 544,880 S 23,768.793 100.05% 1999 25.137,352 24,468,693 97.34% 425,270 24,8937963 99.03% 2000 267217,646 25,319,911 96.58% 421,153 25,741.064 98.18% 2001 26,305,327 25,391.349 96.53% 442,216 25,833,565 98.21% 2002 27,957,126 27,286,591 97.60% 254,154 27,540,745 98.51% 2003 29,813,787 28,565A08 95.81% 365,901 28,931109 97.04% 2004 32,100,657 30,991,234 96.54% 412,246 31,403A80 97.83% 2005 33.423311 32,5507464 97.39% 613,876 33,164,340 9923% 2006 34399,146 29,516,639 85.81% 383,107 29,899,746 86.92% 2007 35,550.694 See Note below 0.000/o See Note below - 0.00% Source: City Finance department Note: Levy Year 2007 is currently being collected through Feb 09 -147- CITY OF EVANSTON, ILLINOIS Ratio of General Bonded Debt Outstanding Last Ten Fiscal fears (2) Net Gross (3) Net General (1) General Debt Debt Net Debt to Obligation Fiscal Equalized Obligation Service Payable General Equalizcd Bonded Year Assessed Bonded Monies From Other Obligation Assessed Debt Ended Population Valuation Debt Available RevenitcS Debt Valuation Per Capita 1999 73,233 L256,996,184 IX976,752 ck178.055 68,025,000 58373.697 4 68% 802.56 2000 73.233 1300.372,202 128.98L760 4,182.913 64,175.000 60.623,847 4.6690 827.82 2001 74.239 1286A59,805 156.955,729 4,562.562 91.710.000 60,683J(57 4.720''. 817.40 2002 74239 1.615,839,177 147,832.588 5,193.168 86,835,000 55,804.420 3.45% 751.69 2003 74239 L71U(53,113 194,086,731 6,942,441 123320.000 63,424190 3.7ION. 85433 2004 74,239 1.737.543.904 191,073.334 6.591437 114A45,000 70,035,897 4.03% 94338 2005 74239 1,727,147.885 187.110.000 6.678359 106.935.000 73.496.641 4260,0 990.00 2006 74,239 2,095,611.570 195,875.000 6,551,304 110,212500 79,111.196 3.78% L065.63 2007 74.239 2.242753.022 187.745.000 6.504,507 96,780.000 84,460A93 3.7746 I, 137.68 2008 74,239 2,245,892,746 181.750.000 6, 146.567 81,455.000 947148,433 4.19% 1,268.18 Notes (1) Equalized assessed zaloes do not include lax increment financing district incremental equalized assessed values (2) Includes contracts payable from goNermnental funds Excludes limited purpose special service district bonds and generat obligation notes payable under line of credit %%ah Northoestern Universn,% (3) These amounts include the general obligation bonds that are being repaid from the Sewer Fund, the Flcet Service Fund, the Motor Vehicle Parking System Fund, the Central Business Tax Increment District Fund. the Howard Hartre:i Tax Increment Tax District Fund, the Southwest Tax Increment District Fund, the Washington National Tax Increment Tax District Fund, the Emergency Telephone System Fund, the Maple Street Parking Fund, recycling rcecnucs of the General Fund, certain dedicated Water Fund revenues, and properptax from the defeased Special Service District No 5 Bonds that is not being abated Source Cook County and Q(y Finance department -148- CITY OF EVANSTON, ILLINOIS Direct and Overlapping Governmental Activities As of February 29, 2008 Direct debt - bonds, notes, and contracts outstanding Other bonded debt County of Cook Cook County Forest Preserve District Metropolitan Water Reclamation District High School District 202 School District 65 Skokie Park District Total Overlapping Debt Total Direct and Overlapping Debt Source: Cook County Percentage of Debt City of Applicable Evanston's Total to City of Share of Debt Outstanding, Evanston (1) $ 105,860,000 100.000% $ 105,860,000 2,953,610,000 121,270,000 1,453,547,772 10,806,445 37,565,000 19,427,836 4,596,227,053 $ 4,702,087,053 WIME 1.557% 45,987,708 1.557% 1,888,174 1.589% 23,096,874 88.620% 9,576,672 88.620% 33,290,103 0.678% 131,721 113,971,252 $ 219,831,252 CITY OF IEVANSTON, ILLINOIS Pledged -Revenue Coverage Last Ten Fiscal Years Water Revenue Bonds Utility Less: Net Fiscal Service Operating Available Debt Service Year Charees Expenses Resources Principal interest Coverase 1999 13,192,965 5,416,366 7,776,599 1,907,500 639,234 3.05 2000 13,709,645 5,602,297 8,107,348 2,170,000 666,466 2.86 2001 13,509,413 5,430,908 8,078,505 2,245,000 589,559 2.85 2002 13,005,269 5,670,480 7,334,789 2,325,000 494,210 2.60 2003 13,687,288 9,347,238 4,340,050 2,200,000 343,795 1.71 2004 13,583,515 7,056,290 6,527,225 805,000 235,913 6.27 2005 13,338,642 6,395,231 6,943,411 805,000 206,575 6.86 2006 14,380,966 6,705,865 7,675,101 865,000 177,355 7.36 2007 13,196,942 6,900,063 6,296,879 470,000 145,088 10?4 2008 13,787,014 7,138,056 6,648,958 485,000 128,713 10.83 Note: Detail regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest, depreciation, or amortization expense. Source: Various City departments -150- CITY OF EVANSTON, ILLINOIS Demographic and liconomic Statistics Last Ten Years Per Capita Education Personal Median Level in Years School Unemployment Year Population Income Ape ofSchooline Enrollment Rate 1999 73,233 29,372 31.9 13.6 9,433.0 3.6% 2000 73,233 30,068 31.9 13.6 10,0680 3.5% 2001 74,239 30,068 31.9 116 9,999.0 4.2% 2002 74,239 33,645 32.5 13.6 10,889.0 5.0% 2003 74,239 36,296 32.5 13.6 9,766.0 5.4% 2004 74,239 36,296 32.5 13.6 9,849.0 5.0% 2005 74,239 37,384 32.5 13.6 9,740.0 5.0% 2006 74,239 39,103 32.5 13.6 9.550.0 4.5% 2007 74,239 39,103 32.5 13.6 9,550.0 4.4% 2008 74,239 39,103 32.5 13.6 9,550.0 4.6% Source: Various Government agencies 151 - CITY OF EVANSTON, ILLINOIS Principal Employers Current Year and Ten fears Ado 2008 1998 Employer EmploNec 011. Rank Emplocer Emolovees % Rank Northwestern University 5325 36% 1 Northo estern University 5,900 36% 1 Evanston Northoestern Healthcare 3,780 25% 2 Evanston Norilioesteni Healthcare 4,300 26% 2 St Francs Hospital 1,649 11 % 3 St Francis Hospital 2,000 12% 3 City of Evanston IMo 7% 4 Evanston School District 65 1,200 7% 4 Evanston School District 65 700 5% 5 Citz of Evanston 832 5% 5 Evanston Toonship High School 566 4% 6 Presbyterian Homes/MeGaw Care 610 4% 6 Presbyterian HoniesMcGao Care 533 4% 7 Evanston Too nship High School 500 3% 7 Rotary International 460 3% 8 Rotary International 450 3% 8 Jewel/Osco Food Stores 455 3% 9 National Louis Unn crsity 300 2% 9 Mather LifcA'ays Retirement 450 3% t0 Shand Morahan Cc 175 1 % 10 Total 14 918 16,267 Source City Economic Development Division Morris Robinson 152 - CITY OF EVANSTON, ILLINOIS Full-time Equivalent Oh Go�ermnent Employees by Function Last Ten Fiscal Tears Fanchon/l'rouram General Government City Clerk Cny Manager's Office MBIS Lc�al Human Resources Finance Facilities Management Communn7 Development Police Fire Human & Health SerWees Public Works Human Relations Library Recreation. Parks& Forestre Total General Fund Emergency 'telephone System CDBG Economic Development Fund Do, ntoo'n 11 TIE Fund Maple Ave Garage Parking Sy stems Special Engineering Water Sewcr Fleet Sen ices Insurance Fund Total Other Funds Total All Funds Fiscal Year Ended 1999 2000 2001 2002 2003 2004 2005 2006 2007 2003 300 300 300 300 300 200 200 200 200 200 805 805 755 755 755 725 725 725 725 1370 1475 1675 1775 2075 21 50 21 80 2280 2480 23 80 25 50 650 650 750 750 600 600 700 700 700 700 900 900 Soo Soo Soo 700 700 700 Soo 800 23 50 23 50 2600 2700 2600 2450 2450 2650 25 50 26 50 23 00 2300 2300 2400 2100 2300 23 10 21 10 21 20 - 36 00 3600 3800 3800 3600 3400 3600 3600 3600 3600 22700 211 00 21 180 214 80 21230 213 80 217 50 21950 221 75 22075 Mod 10900 10900 10900 10900 10900 10900 11000 ill 00 Ill 00 4507 45 93 4573 4503 41 73 3954 3930 3930 40 15 2968 85 51 92 51 91 50 9050 9000 9000 9025 9125 9025 10845 400 400 400 400 4.00 400 400 400 400 - 65 52 6552 65 52 6637 67 17 6620 6665 67 18 67 19 6669 8707 9338 11222 12482 12225 11394 11920 121 30 11990 115 90 74597 747 14 77057 79032 777 50 76203 775 55 784 18 78499 771 17 200 200 300 300 300 400 400 400 400 400 200 200 200 3 50 200 100 200 200 2 00 200 1 15 145 1 45 1.45 145 145 145 145 1 45 1,30 - - - - - - - - 100 - - - - - - - - 100 100 100 11 00 1300 13 00 13 00 13 00 1300 1300 1400 1450 14 50 42 50 4250 4400 4400 4400 4400 4300 4300 43 00 4300 1350 1350 1400 1400 1400 1400 1400 1350 1400 1400 1700 1700 1700 1700 1700 1700 1700 1700 1700 1500 200 1 30 1 30 1 30 1 30 1 00 89 15 9145 9445 9595 9645 96 75 9575 9725 9925 95 80 835 12 838 59 86502 88627 873 95 85878 871 30 381 43 88424 86697 SourceCo.' of Evanston Budget Di, ision 153 - CITY OF EVANSTON, ILLINOIS Property Tax Rates per $100 - Direct and Overlapping GoNernments Last Ten Levy Years Gox ernment Unit City of Evanston Consolidated Elections Cook Countri Cook County Forest Preserve District Suburban T.B. Sanitarium Metropolitan Water Reclamation District North Shore Mosquito Abatement District Evanston Township Community College 535 School District 202 School District 65 Total tax rate for propert}not in park district or special service district Percent of total tax rate levied b) City of Evanston Source: Cook County Assessors office Tax Levy Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2.069 1.888 1.934 2.033 1.628 1.610 1.698 1.528 1.491 1.527 0.027 - 0.023 - 0.032 - 0.029 - 0.014 - 0.919 0.911 0.854 0.824 0.746 0.690 0.630 0593 0.533 0.500 0.074 0.072 0.070 0.069 0.067 0.061 0.059 0.060 0.060 0.057 0.008 0.008 0.008 0.008 0.007 0.006 0.004 0.001 0.005 0.005 0.451 0.444 0.419 0.415 0.401 0371 0.361 0.347 0.315 0.284 0.011 0.011 0.011 0.011 0.010 0.009 0.009 0.008 0.008 0.009 0.077 0.072 0.072 0.077 0.064 0.062 0.065 0.056 0.055 0.058 0.216 0.205 0.203 0.213 0.186 0.179 0.186 0.161 0.158 0.166 3.107 2.905 2.865 2.977 2.469 2349 2.444 2.078 2.023 2.099 4.356 4.126 4.073 4.232 3.516 3343 3.475 2.978 2.890 3.045 11315 10.642 10.532 10.859 9.126 8.680 8.960 7.810 7.552 7.750 18.3% 17.7% 18.40/'. 18.7% 17.8% 18.5% 19.0% 19.60/a 19.7% 19.7% -154- CITY OF EVANSTON, ILLINOIS Water Sold by Type of Customer Last Ten Fiscal Years (m 100 cubic feet) Trpe of Customer Residential Industrial Commercial Go,crmnent Total Total direct rate per 100 cubic feet Source Citv Water department Fiscal Tcar 1999 2000 2001 2002 2003 2004 2005 2006 ^-007 2008 Unavailable 2,M,669 2,942,137 2711;271 2734,202 2639,717 2,506,887 2,720,807 2.388,360 2375,942 Unavailable 42440 42,748 41,895 37,076 36,015 22,010 20,096 16,307 16,579 Unavailable 1,306272 1252,818 1.337280 1395 576 1,415,895 1,318,236 1,267,657 1 278 334 1 240,591 UnmaJable 97.565 101021 113349 112007 90908 86,096 109.121 96.777 100,278 - 4,321,946 4,238,724 4,203795 4.278,861 4,182535 3933.229 4,117,681 3779,778 3,7333n0 S 1 47 S 1 47 S 1 47 S 1 47 S 147 S 1 47 S 1 47 S 1 47 S 1 47 S I S2 -155- CITY OF EVANSTON, ILLINOIS Water Sold by Major Customers Last Ten Fiscal Years 1999 2000 2001 2002 Fiscal 2003 Year 2004 2005 2006 2007 2008 Type of Customer Evanston ressdentsHmsmesses Villare of Skokie Northwest Water Commission S 6,911,950 2,90Zt78 3,181All S 6,774,380 2,908.102 3367.773 S 6,811,100 $ 2,918,766 3,283,048 6,606,091 -859,685 3,247,291 $ 6,711,004 3011,013 3,434,685 $ 6,665,153 2,959,732 3.367253 $ 6,559,026 2,802,720 3377,407 S 6,706,644 3,01 S,734 3750200 $ 5,904,517 2,891534 3,497.939 $ 6,012,643 3,158,396 3,620.873 Total 513,000539 $13,050.255 513,012,914 $12,713,067 513,156,707 $12.992,143 $12,739,153 $13,475,578 $12,194.340 512791,917 Source City Water department -156- CITY OF EVANSTON, ILLINOIS Operating Indicators b} Function/Programs Last Ten Fears Function/Program Police Violent Offenses Propcm Offenses 911 Calls Recen ed Fire Emergenc) responses Fires extinguished Inspections Other Public Works Street resurfacing (estimated miles) Parks and Recreation Athletic field usage (hours) Picnic permits issued Libmrq Volumes in collection Total volumes borrowed Water New connections Water main breaks Average dadp consumption (millions of gallons) Peak daily consumption (millions of gallons) Calendar Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 347 349 393 270 314 293 266 226 224 282 5,311 4.819 4,858 4,174 4,122 3,318 3.145 2,965 2.942 2.825 29,006 27,893 29,052 37,201 55.125 55383 56,650 56.650 55,795 59.135 7,245 7,432 7.566 7.925 8,003 8,106 7,624 8,135 8373 8.517 280 259 247 227 218 225 199 287 220 192 2,620 2,600 - 2,940 3,071 2,664 2.194 1,496 1.320 1,050 3.3 33 3.3 3.3 33 3.3 33 33 33 3.3 unavailable unavailable unavailable unavailable unavailable unavailable unaeadable unavailable 15.561 15,165 unavailable unavailable unavailable unavailable unavailable unavailable unas adablc unavailable 319 373 422,966 437,104 455,481 463,263 477.768 491,064 520,458 486.031 495,575 458,017 872,791 858.343 839,701 878,990 887,773 868,837 880,561 893,841 897,141 867,743 23 44 55 68 47 70 59 74 104 61 41 59 53 34 65 41 45 78 48 36 5127 50 33 47 16 37.16 36 22 37 74 3731 41 44 4141 4291 73 40 8074 69 12 75.50 75 50 73 17 6098 8046 6649 6600 Source Various Cm departments Note Indicators are not available for general government functions -157- CITY OF EYANSTON, ILLINOIS Capital Assets Statistics by Function Last Ten Yeats Function/Program Police Number of Stations Budgeted Sworn Officers Fite Stations Other Public Works Streets (miles) Streetlights Parks and Recreation Acreage Playgrounds Baseball/softball diamonds Soccer/football fields Community centers Water Water mains (miles) Fire In drants Storage capacity (millions of gallons) Calendar Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 I 162 I 162 1 162 I 161 I 161 i 161 1 161 t 161 1 162 1 162 5 5 5 5 5 5 5 5 5 5 147.0 147.0 147.0 147.0 147.0 t47.0 147.0 147.0 147.0 147 5,641 5,641 5,641 5,641 5,641 5.641 5.641 5,641 5,641 5.641 290 290 290 290 290 290 290 290 290 290 51 51 51 51 51 51 5l 51 51 51 18 18 13 18 18 18 18 18 18 18 27 27 27 27 27 27 27 27 27 27 5 5 5 5 5 5 5 5 5 5 159.0 159.0 159.0 159.0 159.0 1590 159.0 159.0 159.0 157 1347 1.347 1.347 L347 1.347 1,347 1,347 1,347 1,347 1.370 22 22 22 22 22 22 22 22 22 22 Source: Various City departments Note. No capital asset indicators are available for the general government or Iibran function -158- This page has been intentionally left blank. TAX INCREMENT FINANCING DISTRICT REQUIREMENTS This page has been intentionally left blank. Pq VirchawKrause Wompany INDEPENDENT AUDITOR'S COMPLIANCE REPORT To Honorable Lorraine H. Morton, Mayor and Members of the City Council Evanston, Illinois We have audited the financial statements of the City of Evanston for the year ended February 29, 2008, and have issued our report dated September 24, 2008. The financial statement is the responsibility of the management of the City of Evanston. Our responsibility is to express an opinion on the eligibility of the expenditures for costs incurred incidental to the implementation of the redevelopment plan and redevelopment projects associated with the Central Business, Howard Hartrey, Southwest, and Washington National Tax Increment Districts pursuant to subsection (q) of Section 11-74.4-3 of the Illinois Tax Increment Redevelopment Allocation Act. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The management of the City of Evanston is responsible for the City of Evanston's compliance with laws and regulations. In connection with our audit, referred to above, we selected and tested transactions and records to determine the City's compliance with State of Illinois Public Act 85-1142, "An Act in Relation to Tax Increment Financing." The results of our tests indicate that for the items tested the Central Business, Howard Hartrey, Southwest, and Washington National Tax Increment Districts complied with subsection (q) of Section 11- 74.4-3 of Public Act 85-1142. tom. t,�,�, �{ �.r2.1� 6.t..� Oak Brook, Illinois September 24, 2008 Virchow, Krause & Company, LLP Certified Public Accountants & Consultants • An Independent Member of Baker Tilly International - 159 - This page has been intentionally left blank.